FAR International Holdings Group Company Limited Issues Profit Warning for YE2025

Key Highlights

• Significant Revenue Decline: The Group expects to report revenue between RMB1.8 billion and RMB2.2 billion for the year ended 31 December 2025 (YE2025). This represents a substantial decrease of approximately 40% to 26% compared to the previous year.
• Sharp Drop in Profits: Profits attributable to owners are forecast to be less than RMB10 million, marking a dramatic fall of at least 85.6% from the prior year.
• Main Causes: The decline is primarily due to changes in U.S. tariff policies, which have resulted in a notable reduction in the Group’s shipments to the United States. Additionally, increased goodwill impairment losses from a wholly owned operating subsidiary have further impacted profits.
• Improvement in Second Half: The Group saw a notable recovery in both revenue and net profit during the second half of YE2025, attributed to strengthened collaborations with major long-term customers and effective cost management measures.

Important Shareholder Information & Price-Sensitivity

• Potential Share Price Impact: The expected steep decline in both revenue and profits, especially due to external factors such as U.S. tariff changes, is highly price-sensitive and could significantly affect the Company’s share value.
• Goodwill Impairment: A notable increase in goodwill impairment losses from a subsidiary adds further downward pressure on profits, raising concerns about asset quality and future earnings stability.
• Unaudited Figures: The financial information disclosed is based on preliminary, unaudited consolidated management accounts, and has not yet been reviewed by the Company’s auditor or audit committee. Actual results may differ from the estimates provided.
• Upcoming Results Announcement: Investors should await the official annual results announcement for YE2025, expected by end of March 2026, for confirmed details.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares in light of this announcement.

Additional Details

• Board Statement: The announcement was made by Wang Quan, Chairman and Executive Director, on behalf of the Board.
• Management Outlook: Despite the poor performance in the first half of YE2025, management notes a positive trend in the second half, thanks to ongoing efforts in customer collaboration and cost control.
• Director Composition: The Board consists of four executive directors, two non-executive directors, and three independent non-executive directors.

Summary for Investors

The sharp decline in revenue and profits, driven mainly by unfavorable U.S. tariff changes and increased impairment losses, represents a material change in the Company’s financial outlook. Although improvements were observed in the latter half of the year, the overall results remain significantly below the previous year’s performance. These developments are highly price-sensitive and may impact the share value of FAR International Holdings Group Company Limited. Investors are strongly urged to await the audited annual results and exercise caution in trading the Company’s shares.

Disclaimer

This article is based on publicly available information from FAR International Holdings Group Company Limited’s preliminary profit warning announcement. The financial estimates are unaudited and subject to change upon review by the Company’s auditor and audit committee. Readers should not rely solely on this article for investment decisions and are advised to consult the official annual results announcement and seek professional advice.

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