Sheng Yuan Holdings Limited Issues Profit Warning for FY2025

Key Highlights

• Significant Drop in Annual Profit Expected: Sheng Yuan Holdings Limited has announced that, based on a preliminary review of its unaudited consolidated management accounts for the financial year ended 31 December 2025 (“FY2025”), it expects to record a profit of not less than HK\$9.0 million. This represents a substantial decrease compared to the profit of approximately HK\$31.9 million reported for the year ended 31 December 2024 (“FY2024”).
• Absence of Non-Recurring Gains: The anticipated decline in profit is primarily attributed to the lack of non-recurring gains that were recognized in FY2024. In the previous year, the Group recorded a gain of approximately HK\$17.5 million from the disposal of debt instruments held at fair value through profit or loss, as well as a write-back of impairment loss on financial assets of around HK\$5.0 million.
• Ongoing Finalization of Results: The company’s annual results for FY2025 are still being finalized. The figures provided are based on preliminary, unaudited management accounts and may differ from the audited results.

Potentially Price-Sensitive Information

• Profit Warning: The significant drop in expected profit for FY2025 compared to FY2024 is material information that could affect investor sentiment and share price.
• Lack of Non-Recurring Gains: Shareholders should note that the lower profit is not due to operational underperformance but the absence of the one-off gains seen in the previous year. This could mean that FY2025’s results are more representative of the company’s recurring profitability.
• Advisory on Trading: The Board has advised shareholders and potential investors to exercise caution when dealing in the Company’s shares, as the final audited results may differ from the figures announced.
• Upcoming Annual Results Announcement: The final annual results for FY2025 are expected to be published on 31 March 2026. Investors are encouraged to review the audited results when released.

Detailed Overview

Sheng Yuan Holdings Limited, incorporated in Bermuda and listed on the Hong Kong Stock Exchange (Stock Code: 851), issued a profit warning on 19 March 2026. The Board of Directors informed shareholders and investors that the Group expects to record a profit of not less than HK\$9.0 million for the financial year ended 31 December 2025, a sharp decrease from the HK\$31.9 million profit in FY2024.

The lower profit is mainly due to the absence of two significant non-recurring items that boosted FY2024’s results: a HK\$17.5 million gain from the disposal of debt instruments and a HK\$5.0 million write-back of impairment loss on financial assets. Without these one-off gains, the recurring profit of the business appears substantially lower.

Investors should note that these figures are preliminary and based on unaudited management accounts. The company is still in the process of finalizing its annual results for FY2025, which may be subject to change after review by the auditor and audit committee.

The Board, led by Chairman Zhou Quan, cautioned investors to exercise care when trading Sheng Yuan Holdings Limited shares ahead of the release of the final annual results, which are scheduled for publication on 31 March 2026.

The Board currently consists of Ms. Li Hongli and Mr. Zhao Yun (executive directors), Mr. Zhou Quan and Mr. Huang Shuanggang (non-executive directors), and Mr. Zhang Jinfan, Ms. Huang Qin, and Mr. Guo Yaoli (independent non-executive directors).

Conclusion

The expected drop in profit for FY2025 is a key development for Sheng Yuan Holdings Limited and is likely to be closely monitored by shareholders and investors. The absence of last year’s non-recurring gains has resulted in a much lower profit forecast, which could impact the company’s valuation and share price in the near term.

Disclaimer: This article is based on the company’s profit warning announcement and preliminary management accounts. The final audited results may differ from those mentioned above. Investors should exercise caution and refer to the official audited results to be announced by the company for FY2025 before making any investment decisions.

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