Nanfang Communication Holdings Limited Issues Profit Warning for FY2025

Key Points and Summary

• Profit Expected to Decline Significantly: Nanfang Communication Holdings Limited (Stock Code: 1617) has announced that its profit and total comprehensive income for the year ended 31 December 2025 is expected to be in the range of RMB28.0 million to RMB31.0 million. This represents a notable decrease of approximately RMB8.9 million to RMB11.9 million compared to the RMB39.9 million reported for the year ended 31 December 2024.
• Primary Reasons for Profit Reduction:
  • Reduction in Government Grants: The company anticipates a decrease in government grants by approximately RMB4.0 million, mainly due to changes in government subsidy policies.
  • Additional Depreciation Expenses: There will be an additional depreciation charge of approximately RMB4.1 million, related to the recognition of depreciation for newly completed construction property during 2025.
• Preliminary Nature of Results: The announcement is based on the management’s preliminary assessment using unaudited consolidated management accounts. These figures have not yet been audited, reviewed by the company’s auditors, or vetted by the audit committee, and may be subject to adjustments.
• Final Results Timeline: The final audited results for the year ended 31 December 2025 are expected to be published by the end of March 2026.

Implications for Shareholders and Investors

• Potential Impact on Share Price: This profit warning is a material development and could affect investor sentiment and the company’s share price. The significant year-on-year drop in profit is price sensitive, especially given the underlying reasons: reduced government support and increased non-cash expenses from depreciation.
• Ongoing Uncertainty: Since the results are still subject to audit and potential adjustments, shareholders are advised to monitor the company’s final results announcement for any changes.
• Management’s Caution to Investors: The company urges shareholders and potential investors to exercise caution when dealing in its shares, given the current outlook and pending final results.

Board and Management

The announcement was made by Ms. Yu Rumin, Chairman of Nanfang Communication Holdings Limited, on behalf of the Board. The Board comprises executive directors Mr. Shi Ming (Chief Executive Officer), Ms. Yu Rumin (Chairman), and Ms. Yu Ruping; non-executive director Mr. Yu Jinlai; and independent non-executive directors Mr. Chan Kai Wing, Mr. Liu Cheng Yi, and Ms. Ju Hefeng.

Investor Guidance

Shareholders and potential investors are strongly advised to read the full annual results announcement for the year ended 31 December 2025, which will be released by the end of March 2026. Until the final results are published, caution is warranted in trading the company’s shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on the preliminary unaudited results and management commentary issued by Nanfang Communication Holdings Limited. Actual results may differ from the estimates provided herein. Investors should exercise their own judgment and seek professional advice before acting on any information contained in this report.

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