Best Food Holding Company Limited Issues Significant Profit Warning for FY2025

Best Food Holding Company Limited (Stock Code: 01488) has released a profit warning that could have a considerable impact on its share price. The board has notified shareholders and potential investors about a dramatic reduction in its expected net loss for the year ended 31 December 2025, as compared to the previous year.

Key Highlights of the Announcement

• Significant Reduction in Net Loss: The Group expects to record a net loss of not more than approximately RMB10 million for the year ended 31 December 2025. This is a major improvement compared to a net loss of approximately RMB258 million for the year ended 31 December 2024.
• Primary Factors for the Improvement:
  • Reduction in Impairment Losses: Impairment losses of intangible assets and investment in an associate have dropped by approximately RMB110 million, significantly easing the pressure on the bottom line.
  • Dilution Gain from Associate’s Listing: The company recognized a dilution gain of about RMB66 million due to the listing of an associate on the Main Board of The Stock Exchange of Hong Kong Limited.
  • Gain on Partial Disposal of Investment: The Group recorded a gain of approximately RMB42 million from the partial disposal of its investment in an associate.
  • Increase in Share of Profits from Associates: The Group’s share of profits from associates increased by around RMB26 million during the reporting year.
• Ongoing Finalization of Results: The financial information provided is based on preliminary, unaudited consolidated management accounts. The results have not yet been reviewed by the auditors or the audit committee, and are therefore subject to change and adjustment.
• Disclosure Timeline: The final annual results for FY2025 are expected to be published by the end of March 2026.

Important Considerations for Shareholders

• Potential Share Price Impact: The sharp reduction in net loss—from RMB258 million to approximately RMB10 million—represents a substantial turnaround in the company’s financial health and could be perceived positively by the market. This may lead to upward movement in the company’s share price, especially if the final audited results are in line with or better than this preliminary announcement.
• Uncertainties Remain: As the results are preliminary and unaudited, investors should be aware that the final numbers may differ. Any adverse changes upon audit could impact market sentiment.
• Price-Sensitive Information: The announcement contains material information regarding the company’s profitability and significant non-recurring gains and losses, which are likely to be price sensitive and could lead to increased trading activity in the company’s shares.

Board Composition

As of the date of the announcement, the Board consists of three executive directors (Mr. Zhao John Huan, Mr. Wang Xiaolong, and Mr. Jing Shen) and three independent non-executive directors (Mr. Leung Kwai Kei, Mr. Lo Wei-Ren, and Ms. Zhuo Ping).

Caution to Investors

Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company until the audited annual results are released.

Disclaimer: The information in this article is based on a company announcement of unaudited management accounts and forward-looking statements. Actual audited results may differ. This article does not constitute investment advice. Investors should perform their own due diligence or consult a professional advisor before making any investment decisions.

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