Daohe Global Group Limited Issues Profit Warning for FY2025

Key Highlights

• The Board of Daohe Global Group Limited has issued a profit warning, projecting a significant drop in profit for the financial year ended 31 December 2025.
• Expected consolidated profit for FY2025 will not exceed US\$0.1 million, compared to approximately US\$2.7 million in FY2024—a decrease of over 96%.
• The sharp decline is primarily attributed to substantial revenue decreases in both the trading and supply chain management services segment and the culture and entertainment segment.

Detailed Financial Insights

Based on the preliminary review of the latest unaudited consolidated management accounts, Daohe Global’s Board anticipates a consolidated profit for FY2025 of not more than US\$0.1 million. This represents a dramatic reduction compared to the previous year’s profit of approximately US\$2.7 million.

The main factors driving this steep decline are:

• Trading and Supply Chain Management Services Segment: Revenue from this segment is expected to decrease by approximately 21% year-on-year, largely due to a challenging and uncertain business environment. Ongoing international trade tensions have negatively affected customer sentiment, resulting in more conservative ordering practices.
• Culture and Entertainment Segment: Revenue from this segment is anticipated to fall by about 23% year-on-year, driven by a slowdown in the pop toys business segment. The slowdown is attributed to product oversaturation in the market and weakened consumer spending.

Shareholder Considerations & Price Sensitivity

• Significant Earnings Decline: The expected reduction in profit is substantial and may be considered price-sensitive information. This could have a negative impact on Daohe Global’s share price once the market fully absorbs the information.
• Business Segment Challenges: Both core segments are under pressure—one from macroeconomic and geopolitical factors, and the other from industry-specific challenges like market saturation and weaker consumer demand.
• Uncertainty Until Final Results: The numbers disclosed are based on unaudited accounts and may be subject to further adjustments upon finalisation of the audited results, which are expected to be published by late March 2026.
• Investor Caution Advised: The Board explicitly advises shareholders and potential investors to exercise caution when dealing in the shares of the Company, pending the release of the final audited results.

Executive Commentary

The announcement was signed by Mr. WONG Hing Lin, Dennis, Executive Director and Chief Executive Officer, on behalf of the Board. As of the date of the announcement, the Board consists of Mr. WONG Hing Lin, Dennis (Executive Director), and Independent Non-executive Directors Mr. LAU Shu Yan, Mr. ZHANG Huijun, and Ms. LUO Juan.

Next Steps

Investors should closely monitor further updates from Daohe Global, especially the release of the audited annual results by late March 2026. Any significant changes to the preliminary figures or additional disclosures could further affect the share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial figures are based on unaudited management accounts and may be subject to change. Investors should read the official audited results and seek professional advice before making any investment decisions.

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