C.banner International Issues Profit Warning for FY2025, Projects Significant Net Loss

Key Highlights

• Anticipated Net Loss: C.banner International Holdings Limited (HKEX: 1028) has issued a profit warning, reporting that it expects to record a significant net loss attributable to shareholders of approximately RMB150 million for the financial year ending 31 December 2025.
• Year-on-Year Comparison: This represents a substantial swing from the previous year, where the Group reported a net profit of approximately RMB48 million for the year ended 31 December 2024.

Details and Factors Affecting Performance

The Board of Directors has attributed the expected net loss for FY2025 to two primary factors:

1. Impairment Loss: The Group will recognize an impairment loss of approximately RMB149 million related to trade debts owed by Mayflower (Nanjing) Enterprises Limited. This one-off impairment item is a major contributing factor to the projected loss.
2. Declining Revenue: The Group’s fashion footwear business has experienced a decrease in revenue, which the Board attributes to the impact of tariffs as well as ongoing weak domestic consumer demand. These macroeconomic and industry headwinds have further weighed on the company’s overall financial performance.

Shareholder Considerations and Price Sensitive Information

• Significant Downturn in Profitability: The move from a RMB48 million profit to a projected RMB150 million loss is a material change that may have a direct impact on the company’s share price.
• Impairment Loss Magnitude: The impairment recognized is nearly as large as the total projected loss, indicating it is a primary driver of the negative results.
• Revenue Pressure: The core business faces challenges from both external tariff pressures and subdued consumer sentiment in China, suggesting colling prospects for a near-term recovery.
• Ongoing Uncertainty: The results announced are based on unaudited management accounts and may be subject to further adjustments. The final audited results for FY2025 are expected to be released on or before 31 March 2026.

Board Statement and Next Steps

The Board emphasizes that the information contained in the profit warning is based on a preliminary assessment of unaudited consolidated management accounts and other information currently available. The numbers have not yet been reviewed or confirmed by the company’s auditor or audit committee, and as such, may be subject to change.

Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of C.banner International Holdings Limited until the audited results are formally announced.

Corporate Governance Update

• Directors: As of the date of the announcement, the Board consists of Mr. Chen Yixi (Chairman), Mr. Yuan Zhenhua, Mr. Wu Weiming, and Mr. Zhang Baojun (Executive Directors); Ms. Fan Yuanyuan and Ms. Zhang Yichen (Non-Executive Directors); and Mr. Kwong Wai Sun Wilson, Mr. Xu Chengming, and Mr. Zheng Hongliang (Independent Non-Executive Directors).
• Date of Announcement: 12 March 2026.

Disclaimer: The above article is based on preliminary unaudited information provided by C.banner International Holdings Limited and may be subject to adjustments pending the completion of the company’s audit and review processes. Investors are advised to exercise caution and consider the inherent risks before making any investment decisions.

View C.BANNER Historical chart here