Honghua Group (196) released a positive profit alert, indicating an expected profit attributable to shareholders of not less than RMB20 million for the year ended 31 December 2025. This figure reflects a significant improvement compared with the RMB7.576 million in profit recorded for the corresponding period in 2024.

According to the announcement, the projected earnings growth is primarily attributed to two factors. First, the group has focused on adding new business growth drivers, expanding sales markets, and achieving higher capacity utilization, highlighted by a substantial year-on-year increase in offshore segment orders. Second, the company has implemented lean management and measures to boost quality and efficiency, which have resulted in optimized operating performance, reduced selling and administrative expenses, and lower finance costs.

The announcement also underscores that the financial information is based on unaudited consolidated management accounts and that the final results—subject to review—will be released in the annual results announcement for 2025. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.