Shanshan Brand Management Co., Ltd. Issues Profit Alert for FY2025

Key Points from the Announcement

• Significant Decline in Net Profit: Shanshan Brand Management Co., Ltd. expects to report a consolidated net profit of approximately RMB7.0 million for the year ended 31 December 2025, compared to RMB33.2 million for the previous year (FY2024).
• Preliminary Figures: The profit figures are based on a preliminary review of unaudited management accounts and may be subject to change as the final results are still being prepared.
• Industry Challenges: The company attributes this substantial decrease in net profit primarily to ongoing pressures in the apparel industry, particularly during the second half of the year.
• Market Conditions: Factors such as low market demand and intensifying competition among apparel brands led to a reduction in order volumes from distributors and work uniform sales channels, resulting in lower gross profit for the Group.
• Upcoming Results Announcement: The final audited results for FY2025 will be released on 20 March 2026.

Details Investors Should Know

• Potential Share Price Impact: The anticipated drop in net profit—from RMB33.2 million to RMB7.0 million—represents a decrease of nearly 80%. This is a material event and could be price sensitive, potentially affecting investor sentiment and share valuation.
• Risks and Uncertainties: The figures disclosed are preliminary; actual results may differ once the full-year accounts are finalized. Investors should be aware of possible further adjustments.
• Industry Outlook: The apparel sector remains challenging, with low demand and fierce competition expected to persist. This could continue to impact profitability and growth prospects for Shanshan Brand Management going forward.
• Management Caution: The Board advises shareholders and potential investors to exercise caution when dealing in the shares of the Company until the final results are published.

Board and Management

The leadership of Shanshan Brand Management Co., Ltd. comprises:

• Chairman: Luo Yefei
• Executive Directors: Luo Yefei, Cao Yang, Yan Jingfen, Zhou Yumei
• Non-Executive Directors: Mao Weiyong, Wang Mingming
• Independent Non-Executive Directors: Chow Ching Ning, Wang Yashan, Wu Xuekai

The announcement was made in Ningbo, PRC, on 6 March 2026.

What Should Investors Do?

This announcement constitutes a profit warning and is likely to be a major price-sensitive event. Investors are strongly advised to monitor further disclosures, particularly the official results announcement on 20 March 2026, and to evaluate their positions in light of the company’s challenging industry environment and sharply reduced profitability.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making any investment decisions. The reported figures are preliminary and may change upon finalization of the audited financial statements.

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