Hengdeli Holdings Issues Profit Alert: Significant Reduction in Losses for FY2025

Key Highlights

• Substantial Decrease in Losses: Hengdeli Holdings Limited expects its loss attributable to equity shareholders for the financial year ended 31 December 2025 to be approximately not less than RMB26 million, a significant reduction of about 60.1% compared to a loss of RMB65.2 million for the same period in 2024.
• Positive Operating Trends: The improved performance is mainly attributed to:
  • Improvement in gross profit and gross profit margin.
  • Foreign exchange gains arising from fluctuations in exchange rates, benefiting the Group’s operating units.
• Preliminary Results: The financial data mentioned are based on a preliminary, unaudited assessment by the management and have not been audited, reviewed, or discussed with the Company’s auditors. The final audited results may differ from the numbers disclosed in this announcement.
• Final Results Announcement: The Company expects to release its final results for the year ended 31 December 2025 in March 2026 in compliance with Hong Kong Listing Rules.
• Investor Caution: Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company, as the figures are subject to finalization and possible adjustments.

Detailed Analysis for Investors

Hengdeli Holdings Limited, a company listed on the Hong Kong Stock Exchange (stock code: 3389), has released a profit alert indicating a noteworthy improvement in its financial performance for the year ended 31 December 2025. According to a preliminary review of the unaudited consolidated management accounts, the Company expects a loss attributable to equity shareholders of no less than RMB26 million, a substantial narrowing from the RMB65.2 million loss reported for 2024.

This 60.1% reduction in loss is primarily driven by two factors:

1. Enhanced Gross Profit and Margin: The Group has successfully improved its gross profit and margin, suggesting either better cost control, higher sales, improved product mix, or a combination of these factors. This development could indicate a positive shift in operational efficiency or market demand for the Group’s products and services.
2. Favorable Foreign Exchange Movements: The Group reported foreign exchange gains from its operating units, stemming from exchange rate fluctuations. This has provided a boost to the bottom line and highlights the sensitivity of the Company’s results to currency movements.

Important Information for Shareholders

• Price-Sensitive Information: The significant reduction in losses and the reasons for the improvement are material and could influence the Company’s share price. Investors should closely monitor subsequent updates, particularly the audited results expected in March 2026.
• Preliminary Nature of Figures: The financial numbers released are based on management’s preliminary, unaudited accounts. The actual audited results may vary after the completion of the audit process and any necessary adjustments.
• Ongoing Review: The Company is still finalizing its annual results. Investors should be aware of the potential for further revisions or updates that may impact their investment decisions.
• Caution Advised: The Board specifically advises caution in dealing with the Company’s shares until the final results are published, as the current figures are subject to change.

Corporate Governance Update

As of the date of this announcement, the Board consists of:

• Executive Directors: Mr. Cheung Wing Lun Tony (Chairman) and Mr. Lee Shu Chung Stan
• Non-Executive Director: Mr. Shi Zhongyang
• Independent Non-Executive Directors: Mr. Cai Jianmin, Mr. Liu Xueling, and Ms. Qian Weiqing

Disclaimer: This article is based on the Company’s preliminary unaudited profit alert announcement. All financial data are subject to confirmation and adjustment upon completion of the audit process. Investors are strongly advised to exercise caution when dealing in the securities of Hengdeli Holdings Limited and to refer to the final audited results to be announced in March 2026 for the most accurate and up-to-date information. This article does not constitute investment advice.

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