China Hongguang Holdings Limited released a positive profit alert, indicating that unaudited management accounts point to a year-on-year net profit increase of over 150% for the twelve months ended 31 December 2025.

The sharp earnings acceleration is attributed to two main factors: 1. Gross profit margin improvement, signalling healthier pricing or cost efficiencies in core operations. 2. A marked drop in general and administrative expenses, chiefly driven by the recovery of long-outstanding receivables, which enabled a reversal of previously recognised impairment losses on trade and other receivables.

The company is finalising its audited results, scheduled for publication on 31 March 2026. Management emphasised that the current figures are based on preliminary, unaudited data and may be adjusted after the audit review.

Shareholders and potential investors are advised to exercise caution when dealing in China Hongguang’s securities until the formal results are released.