Shenguan Holdings (Group) Limited (stock code: 00829) has issued a profit warning, projecting a loss attributable to owners of RMB65 million–RMB78 million for the financial year ended 31 December 2025. The guidance contrasts sharply with the RMB26.70 million profit recorded in FY2024, signalling a swing into negative territory of roughly RMB91.70 million–RMB104.70 million year-on-year.

Management attributes the expected downturn to two principal factors:

1. Operating Challenges and Inventory Provisions • Sales revenue remained broadly flat versus FY2024, yet higher inventory write-offs and provisions emerged. • Large-scale product trial runs and production-line upgrades conducted between 2022 and 2024 generated finished-goods inventory that has not been fully absorbed by the market. • These dynamics, combined with a difficult business environment, are projected to translate into an after-tax operating loss of RMB22 million–RMB35 million.

2. Financial Planning–Linked Withholding Tax • A Hong Kong subsidiary has repaid all interest-bearing loans to a mainland China affiliate using dividends received from a PRC subsidiary. • The dividend remittance triggered withholding-tax expenses and related provisions, forming the balance of the anticipated loss.

The figures are derived from unaudited management accounts and remain subject to audit adjustments. Shenguan plans to release its full FY2025 results in late March 2026.

Investors are advised to exercise caution when dealing in the company’s shares until the audited results are available.