Starjoy Wellness and Travel Company Limited (STARJOY W&T, stock code 03662) has issued a profit warning, projecting a sharp decline in earnings for the financial year ending 31 December 2025 (FY2025).

The Group expects to report: • Net profit of approximately RMB45.00–50.00 million, down 42%–48% from RMB86.30 million in FY2024. • Profit attributable to shareholders of about RMB50.00–55.00 million, 43%–48% lower than RMB96.20 million a year earlier. • Core net profit (excluding foreign-exchange effects, fair-value changes, goodwill impairment and other non-recurring items) of roughly RMB97.00–107.00 million, broadly flat versus RMB104.90 million in FY2024.

According to management, five factors weighed on FY2025 results: 1. A RMB27.00 million year-on-year drop in exchange gains driven by RMB appreciation against the US dollar and Hong Kong dollar. 2. A RMB5.00 million contraction in bank-interest income amid lower deposit rates. 3. Goodwill impairment of about RMB14.00 million related to subsidiaries whose operations have scaled down following strategic adjustments. 4. A further RMB5.00 million year-on-year increase in fair-value losses on equity investments in medical-aesthetic firms, reflecting intensified market competition. 5. Higher spending to upgrade project resources and service quality in response to heightened competition.

The figures are drawn from unaudited management accounts and remain subject to audit. STARJOY W&T plans to release its audited FY2025 results on or around 27 March 2026. The company urges shareholders and potential investors to exercise caution when dealing in its shares.