Key Points from the Profit Warning
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Expected Sharp Decrease in Reported Profit: The Group anticipates reporting a profit for FY2025 of approximately RMB45.0 million to RMB50.0 million. This represents a substantial decline compared to the approximately RMB86.3 million profit recorded in FY2024.
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Profit Attributable to Owners Drops: Profit attributable to owners of the Company is expected to be in the range of RMB50.0 million to RMB55.0 million, down significantly from RMB96.2 million in FY2024.
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Stable Core Net Profit (Excluding Non-Recurring Items): After excluding non-recurring and non-operating profit or loss items, the Group expects a core net profit of approximately RMB97.0 million to RMB107.0 million for FY2025. This is essentially unchanged compared to RMB104.9 million in FY2024, indicating that the underlying business remains stable.
Key Factors Impacting FY2025 Results
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Foreign Exchange Losses: The Group recorded a substantial year-on-year decrease of approximately RMB27.0 million in exchange gains, primarily due to the depreciation of the US dollar and Hong Kong dollar against the Renminbi.
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Decline in Bank Interest Income: There was a significant year-on-year decrease of around RMB5.0 million in bank interest income, attributed to lower bank deposit interest rates.
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Goodwill Impairment: The Group recognized impairment losses of approximately RMB14.0 million on goodwill related to certain subsidiaries acquired in previous years. This was primarily due to a contraction in the operating scale of these subsidiaries following strategic adjustments.
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Medical Aesthetic Segment Under Pressure: Intensifying competition in the medical aesthetic market led to a year-on-year decline in both revenue and profit of invested medical aesthetic companies. Consequently, there was a significant decrease in the fair value of these equity instruments, resulting in a year-on-year increase of about RMB5.0 million in the decrease amount.
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Increased Investments in Service Quality: To boost customer satisfaction and remain competitive, the Group has increased its investment in project resources and continuous improvement in property service quality.
Other Important Information for Shareholders
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Potential Share Price Impact: The sharp decline in reported profit and profit attributable to owners for FY2025, despite stable core net profit, may be viewed negatively by the market and could exert downward pressure on the Company’s share price.
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Non-Recurring and Non-Operating Items: The Company highlights that core net profit excludes non-recurring and non-operating items such as net foreign exchange gains, gains or losses on the disposal of subsidiaries/investment properties, fair value changes in equity instruments, goodwill impairment losses, and share-based expenses.
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Unaudited Figures: The financial figures disclosed are based on unaudited management accounts and may be subject to adjustments following audit procedures.
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Final Results Announcement: The Board expects to publish the audited annual results for FY2025 on or around 27 March 2026.
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Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares, given the profit warning and uncertainties in the final audited results.
Summary
In summary, Starjoy Wellness and Travel Company Limited’s profit warning signals a notable year-on-year fall in reported profit and profit attributable to owners for FY2025, primarily due to foreign exchange losses, lower bank interest income, goodwill impairment, and challenges in the medical aesthetic sector. However, the stability in core net profit after excluding one-off and non-operating items may offer some reassurance regarding the Group’s fundamental business performance. Investors should closely monitor the upcoming audited results and be aware of the potential for share price volatility in response to this announcement.
Disclaimer: This article is based on information provided in Starjoy Wellness and Travel Company Limited’s profit warning announcement dated 13 March 2026 and is intended for informational purposes only. Investors are reminded that the figures cited are unaudited and subject to change. This article does not constitute investment advice. Please consult your professional advisor before making investment decisions.
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