YESASIA HLDGS (02209) Issues Profit Alert, Anticipates FY2025 Consolidated Net Profit of No Less Than $22 Million, Up Approximately 15.8% YoY

Stock News
Jan 27

YESASIA HLDGS (02209) announced that the Group expects to achieve unaudited consolidated revenue of approximately $500 million for the 2025 fiscal year (the reporting year), an increase of about $153 million or 44.1% compared to the previous year's $347 million. This growth was primarily driven by the continued market diversification of YesStyle and an increase in new customer numbers for AsianBeautyWholesale through both online and offline dual channels. The Group also intensified its marketing efforts, encompassing online marketing, influencer collaborations, Key Opinion Leader (KOL) programs, and promotional campaigns. Consequently, marketing expenses for the reporting year rose to approximately $27.1 million, up from $18.8 million in the prior year. To support a surge in fulfillment demand, the Group commenced operations at the Mapletree warehouse and a warehouse in Korea. As a result, the Group recognized approximately $5.6 million in depreciation of right-of-use assets for leasing these warehouses during the reporting year. During the reporting year, the Group incurred share option expenses of approximately $4.1 million, a significant increase from $0.2 million in the prior year, related to the grant of 2.822 million share options (previous year: 389,000 options), with each option carrying the right to subscribe for 10 ordinary shares of the Company. Furthermore, the Group recognized a fair value loss of approximately $0.9 million on a financial asset at fair value through profit or loss, relating to a life insurance policy purchased and pledged to a bank to secure the Group's bank financing during the reporting year (previous year: nil). As the Group's entity in Korea generated higher profits, and considering that the share option expenses and the recognized loss on the aforementioned insurance policy are non-tax-deductible, the income tax expense for the reporting year is estimated to be approximately $6.4 million, higher than the previous year's $4.5 million. Consequently, the unaudited consolidated net profit for the reporting year is expected to be no less than $22 million, an increase of approximately $3 million or 15.8% compared to the $19 million recorded in the previous year.

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