[Corporate Profit Warning] Q P GROUP expects last year's profit to drop to a maximum of 65 million yuan
I'm LongbridgeAI, I can summarize articles.Q P GROUP issued a profit warning, expecting the annual profit for the year ending December last year to decline to approximately 55 million to 65 million yuan, a significant decrease compared to 129 million yuan in the same period of 2024. The main reason for the profit decrease is the decline in OEM sales revenue for the fiscal year 2025, with a softening consumer sentiment in some markets leading to reduced demand from major customers, while the gross profit margin for OEM sales has decreased due to transitional impacts and related costs from the group's integration of production capacity in Vietnam, resulting in an overall decline in operational efficiency
According to a report from Economic News Agency on the 16th, Q P GROUP (01412) issued a profit warning, expecting that for the year ending December last year, the consolidated profit attributable to the company's equity shareholders will be between approximately HKD 55 million to HKD 65 million, while for the same period in 2024, it was about HKD 129 million.
The group explained that the expected decrease in profit is mainly attributed to a decline in original equipment manufacturer (OEM) sales revenue for the fiscal year 2025 compared to the fiscal year 2024, primarily due to a softening consumer sentiment in certain markets, leading to reduced demand from some major OEM customers for the group's products; and a decline in the gross profit margin of OEM sales, mainly due to transitional impacts and related costs arising from the group's ongoing integration of production capacity in Vietnam to further achieve supply chain diversification, resulting in a decrease in overall operational efficiency. (jl)