D&G Technology Holding Company Limited Issues Profit Warning for FY2025

Key Points of the Announcement

• Significant Shift from Profit to Loss Forecasted: D&G Technology Holding Company Limited has announced that it expects to report a net loss attributable to shareholders of between RMB12 million and RMB18 million for the year ended 31 December 2025. This contrasts sharply with the net profit of approximately RMB4 million recorded for the previous year (2024).
• Factors Behind the Expected Loss:
  • Decrease in Overseas Sales: The company attributes part of the projected loss to a decline in overseas sales, which could indicate challenges in international markets or increased competition.
  • Lower Reversal of Impairment Losses: The reversal of impairment losses on trade receivables is expected to be much lower in 2025 than in 2024 (when approximately RMB9 million was reversed), reducing the positive impact on the bottom line.
  • Increased Inventory Provision: Due to weakened market demand, the company anticipates an increase in its inventory provision. This is attributed to aging inventory and a higher risk of slow-moving stock, which will likely lead to additional write-downs.
  • Rising Selling and Distribution Expenses: Expenses related to freight, transportation, and distribution fees have risen, further pressuring the company’s profitability.
• Preliminary Figures: The forecast is based on unaudited management accounts and currently available information. The figures are still being verified and are subject to adjustments when the audited annual results are finalized.
• Final Results Timeline: The company expects to publish its official annual results announcement for FY2025 by the end of March 2026.

Implications for Shareholders

• Price Sensitive Information: The transition from profit to a significant net loss is likely to be viewed negatively by the market and may have a material impact on the company’s share price.
• Caution Advised: Shareholders and potential investors are urged to exercise caution in their dealings with D&G Technology’s securities in light of this profit warning and the possibility of further adjustments to the financial results.

Board of Directors

As of the date of the announcement (10 March 2026), the board comprises:

• Executive Directors: Ms. Choi Kwan Li, Glendy (Chairman), Mr. Choi Hon Ting, Derek, Mr. Liu Tom Jing-zhi, and Mr. Lao Kam Chi
• Non-Executive Directors: Mr. Chan Lewis and Mr. Alain Vincent Fontaine
• Independent Non-Executive Directors: Mr. O’Yang Wiley, Mr. Lee Wai Yat, Paco, and Ms. Hu Bingbing

What to Watch Next

• Annual Results Release: Investors should monitor the company’s annual results announcement, which will provide audited figures and more details on the company’s performance and outlook.
• Market Reaction: Given the unexpected loss and the reasons behind it, significant share price movement is possible when trading resumes or as new information emerges.

Disclaimer: The above article is based on the preliminary announcement made by D&G Technology Holding Company Limited. The figures are unaudited, subject to adjustments, and should not be solely relied upon for investment decisions. Investors are advised to review the company’s official audited results and consult professional advisers before acting on this information.

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