---
title: "Kwung’s Aroma warns of 70% profit slump on EU duties and cost pressures"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279871866.md"
description: "Kwung’s Aroma Holdings Limited has warned of a 70% profit decline for the year ending December 31, 2025, projecting net profits to fall to approximately RMB36 million from RMB119 million. This drop is attributed to reduced European orders due to EU anti-dumping duties, increased administrative costs, and currency depreciation affecting overseas revenue. The company is finalizing its audited results, set to be released on March 31, 2026, and advises caution to shareholders and potential investors. The current analyst rating for its stock is a Buy with a price target of HK$1.00."
datetime: "2026-03-19T23:37:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279871866.md)
  - [en](https://longbridge.com/en/news/279871866.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279871866.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/279871866.md) | [繁體中文](https://longbridge.com/zh-HK/news/279871866.md)


# Kwung’s Aroma warns of 70% profit slump on EU duties and cost pressures

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Kwung’s Holdings Limited ( (HK:1925) ) just unveiled an announcement.

Kwung’s Aroma Holdings Limited has warned that its net profit for the year ended 31 December 2025 is expected to plunge about 70% to roughly RMB36 million from RMB119 million a year earlier. The decline underscores pressure on its export-driven aroma and candle business amid changing trade dynamics and currency movements.

Management attributed the profit slump to a sharp drop in gross profit caused by fewer European orders, which it links to EU anti-dumping duties on PRC-origin candle products. Earnings were further hit by the absence of a one-off gain from a 2024 subsidiary disposal, higher administrative costs from new production bases in Anhui and Vietnam, and the depreciation of the U.S. dollar against the renminbi reducing overseas revenue.

The company is still finalising its audited 2025 results, which may differ from the preliminary figures disclosed in the warning. It plans to release full-year results on 31 March 2026 and has urged shareholders and potential investors to exercise caution when dealing in its shares ahead of the official announcement.

The most recent analyst rating on (HK:1925) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

**More about Kwung’s Holdings Limited**

Kwung’s Aroma Holdings Limited is a Cayman Islands-incorporated company listed in Hong Kong that operates in the fragrance and candle products sector. The group manufactures and exports aroma and candle products, with a notable customer base in overseas markets, including Europe and other regions where orders are typically denominated in U.S. dollars.

**Average Trading Volume:** 60,238

**Technical Sentiment Signal:** Strong Buy

**Current Market Cap:** HK$518.5M

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