Herbs Generation Group Holdings Limited (02593.HK) issued a profit warning, projecting a net loss of not less than HK$23.00 million for the financial year ended 31 December 2025. This contrasts sharply with the HK$13.00 million net profit recorded in FY2024.

Management attributes the expected downturn to three principal factors:

1. Revenue and margin erosion: Expanded promotional discounting during the period reduced both sales and gross profit. 2. Higher marketing spend: Advertising and promotion outlays—including online and offline campaigns as well as the engagement of entertainers and key opinion leaders—rose markedly year-on-year. 3. Rising personnel costs: Staff expenses increased during the reporting period, further pressuring profitability.

The Board emphasized that the FY2025 figures are based on unaudited management accounts. Audited results will be released by end-March 2026. Shareholders and prospective investors are urged to exercise caution when dealing in the company’s securities.