Key Highlights

• Revenue Decline: The Group expects revenue for the year ended 31 December 2025 to be in the range of RMB205 million to RMB230 million, marking a substantial decrease of approximately 36.34% to 43.26% compared to RMB361.3 million in 2024.
• Significant Reduction in Net Loss: The net loss attributable to shareholders is projected to be RMB80 million to RMB100 million, which is a notable improvement (down 67.48% to 73.98%) from the RMB307.5 million net loss reported in 2024.
• Key Drivers Behind Results:
  • Revenue decline is primarily attributed to continued sluggish recovery in the consumer market, with offline physical stores facing operational challenges.
  • The decrease in net loss is due to a significant reduction in impairment losses on assets (which were substantial in 2024) and successful implementation of cost-reduction and efficiency-improving measures within the Group.

Important Information for Shareholders

• Potential Price Sensitivity: The sharp decline in revenue, while concerning, is offset by a much improved bottom line, which may influence investor sentiment and share value.
• Risk Factors:
  • The figures shared are based on preliminary, unaudited management accounts and may differ from the final audited results.
  • The results for the year ended 31 December 2025 are expected to be officially announced by the end of March 2026.
  • Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company due to the uncertainty and potential impact of these financial results.

Detailed Analysis

Pu’er Lancang Ancient Tea Co., Ltd., a joint stock company listed in Hong Kong, has issued a profit warning for the year ended 31 December 2025. The announcement, made in accordance with Hong Kong Stock Exchange regulations, signals a period of operational challenge and strategic adjustment.

The Group has faced a sluggish recovery in the consumer market, particularly affecting its offline physical stores. This has resulted in a substantial drop in revenue, with expected figures ranging from RMB205 million to RMB230 million, compared to RMB361.3 million in the previous year. The revenue contraction raises concerns about the Group’s sales channels and market conditions.

Despite the revenue decline, the company has managed to significantly narrow its net loss, thanks to two primary factors:

• Reduced Impairment Losses: In 2024, the Group recorded a large amount of impairment losses on assets, but these losses have been reduced significantly in 2025.
• Cost and Expense Reductions: The Group implemented targeted measures to cut costs and improve efficiency, contributing to the improved bottom line.

This combination of lower revenue and dramatically reduced losses presents a mixed picture for investors. While the company’s sales are declining, its operational improvements and asset management may point to a more sustainable financial position moving forward.

Investors should note that these figures are based on preliminary internal assessments and have not been audited. The final results, which will be disclosed by the end of March 2026, may differ, potentially impacting the share price further.

Board Composition

The Board, as of the date of the announcement, includes Ms. Du Chunyi (Chairlady and Executive Director), Mr. Zhou Xinzhong, Ms. Shi Yijing, Mr. Fu Gang (Executive Directors), Mr. Liu Jiajie (Non-Executive Director), and independent non-executive directors Ms. Huang Lin, Mr. Tang Zhangliang, and Dr. Yang Kequan.

Investor Guidance

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Pu’er Lancang Ancient Tea Co., Ltd. Any deviation from the preliminary numbers in the audited results or further market challenges could impact share values.

Disclaimer

The above article is based on preliminary unaudited information and may not reflect the final audited financial results of Pu’er Lancang Ancient Tea Co., Ltd. Investors are advised to make their own independent assessment and consult professional advisors before making investment decisions. The company and the author accept no liability for any losses arising from reliance on this information.

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