Kwung's Aroma Holdings Limited (Stock Code: 01925) has issued a profit warning, anticipating a sharp downturn in earnings for the financial year ended 31 December 2025. Based on the Board’s preliminary assessment of unaudited figures, net profit is expected to contract by roughly RMB83.00 million, declining 70% from RMB119.00 million in FY2024 to about RMB36.00 million in FY2025.

Key factors cited for the profit slide include: 1. Revenue pressure from Europe: Gross profit is estimated to drop by approximately RMB34.90 million, mainly due to reduced purchase orders from European customers following European Union anti-dumping duties on candle imports from China. 2. Absence of a one-off gain: The FY2024 base year benefited from a RMB21.70 million disposal gain that will not recur in FY2025. 3. Operating cost expansion: Administrative expenses rose with the commissioning of new production bases in Wuhu, Anhui Province, and Vietnam. 4. Currency headwinds: Depreciation of the U.S. dollar against the renminbi eroded revenue on overseas orders denominated in USD.

The Group is finalising its audited results, scheduled for release on 31 March 2026. Shareholders and potential investors are urged to exercise caution when dealing in the Company’s shares until the audited figures are published.