Daido Group Limited Issues Significant Profit Warning for FY2025

Daido Group Limited (Stock Code: 00544) has released a profit warning for the year ended 31 December 2025, signaling a substantial deterioration in its financial performance. This announcement is made in accordance with Hong Kong Stock Exchange Listing Rules and the Securities and Futures Ordinance requirements.

Key Highlights

• Expected Net Loss: The Group projects a net loss attributable to equity holders of not less than HK\$72.1 million for FY2025. This marks a significant increase from the net loss of HK\$40.2 million recorded in FY2024.
• Revenue Declines:
  • Cold Storage and Related Services: Revenue is expected to decrease by approximately 26%.
  • Trading and Sales of Food & Beverage in Mainland China: Revenue is anticipated to drop sharply by around 57%.
  • Other Services Income: Income from other services is forecast to decrease by about 54%.
• Reasons for Decline: The Board attributes the downturn to challenging macroeconomic conditions, which have weakened demand for the Group’s products and services across its business segments.
• Higher Finance Costs: The extension of lease agreements for the cold storage warehouse at the end of 2024 has resulted in increased finance costs, further contributing to the expected net loss.
• Uncertainty in Actual Results: The figures stated are based on preliminary, unaudited consolidated management accounts and may differ from the final audited results. The official annual results announcement is expected in late March 2026.

Important Information for Shareholders

• This profit warning is a price-sensitive disclosure: The anticipated increase in losses, along with significant revenue declines across all major business segments, is likely to impact investor sentiment and share value negatively.
• Exercise Caution: Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Daido Group Limited until the audited results are released and full details are available.
• Further Details Pending: The annual results announcement will provide comprehensive information and is expected to be published in late March 2026. Investors are advised to monitor for updates.

Board Composition

• Executive Director: Mr. He Xinyu
• Non-Executive Director: Ms. Kwan Nga Chung
• Independent Non-Executive Directors: Mr. Leung Chi Hung, Ms. Li Dan, Mr. Lo Chi Wang

Conclusion

The announcement from Daido Group Limited signals a challenging year ahead for the company, with substantial increases in net losses and steep revenue declines across its core businesses. The situation is compounded by increased finance costs from lease extensions. This development is highly relevant for investors, as it is likely to influence the company’s share price and warrants careful attention.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the official company announcements and consult professional advisers before making any investment decisions. The financial information herein is based on unaudited management accounts and may differ from final audited results.

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