Sunway International Holdings Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Significant Reduction in Consolidated Loss: Sunway International Holdings Limited (“the Company”) expects its consolidated loss for the year ended 31 December 2025 to decrease by approximately 25% to 35% compared to the previous year.
• Preliminary Unaudited Figures: The financial improvement is based on the preliminary review of the Group’s unaudited consolidated management accounts for FY2025.

Details and Factors Impacting Results

The Company attributes the anticipated reduction in consolidated loss to several key factors:

1. Decreased Impairment Losses: There has been a significant reduction—approximately HK\$27 million—in impairment losses recognized under the expected credit loss model on trade and other receivables.
2. Lower Revenue in Manufacturing and Trading: Revenue from the Group’s manufacturing and trading business in the People’s Republic of China (PRC) declined by around 20%. This drop is largely due to the continued weakness in the property market and related business segments.
3. Decreased Gross Profit Percentage: The Group’s overall gross profit percentage has fallen, primarily because the operating results of its aerated concrete products have deteriorated since 2024.

The Company notes that the slumping PRC property market and related business sectors have shown signs of stabilization since the end of 2025, contributing to the improved loss position.

Implications for Shareholders and Investors

• Unaudited and Subject to Change: The financial information presented is based on unaudited management accounts and has not yet been reviewed by the audit committee. The final annual results may be subject to amendments.
• Results Announcement Timeline: The Company expects to publish its final results announcement for the year ended 31 December 2025 by the end of March 2026, or later if necessary.
• Potential Price Sensitivity: The expectation of a significantly reduced consolidated loss—driven by lower impairment charges—represents a positive development that could impact investor sentiment and potentially move the Company’s share price.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares until the audited results are released.

Corporate Governance

As of the date of this announcement, the Board of Sunway International Holdings Limited comprises:

• One executive Director: Mr. Law Chun Choi (also serves as Company Secretary)
• One non-executive Director: Mr. Yu Shui Sang Bernard
• Three independent non-executive Directors: Mr. Choi Pun Lap, Mr. Wong Yue Kwan Alan, and Ms. Tsang Ngo Yin

Conclusion

In summary, Sunway International Holdings Limited expects to report a material reduction in consolidated loss for FY2025, mainly driven by a sharp decrease in impairment losses. However, the Company faces ongoing challenges in its core PRC business segments, with lower revenues and gross profit margins. Investors should watch for the final audited results due by March 2026 and remain cautious in their trading decisions.

Disclaimer: This article is a summary and interpretation of Sunway International Holdings Limited’s published positive profit alert. It is not investment advice. Investors should refer to the official financial results and conduct their own due diligence before making investment decisions. The information herein is based on preliminary unaudited figures that may be subject to change.

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