Q P GROUP (01412) Issues Profit Warning, Forecasts 2025 Shareholder Comprehensive Profit of HK$55-65 Million

Stock News
Jan 16

Q P GROUP (01412) announced that the Group expects to record a comprehensive profit attributable to equity shareholders of the Company for the year ending December 31, 2025 (the 2025 financial year) of between approximately HK$55 million and HK$65 million, compared to approximately HK$129 million for the year ended December 31, 2024 (the 2024 financial year). The Board believes the anticipated profit decrease is primarily attributable to a reduction in the Group's Original Equipment Manufacturer (OEM) sales revenue for the 2025 financial year compared to the 2024 financial year. This decline is mainly due to softer consumer sentiment in certain markets, leading to reduced demand for the Group's products from some key OEM clients, coupled with a decrease in the gross profit margin for OEM sales. The margin contraction is largely a result of transitional impacts and associated costs from the Group's ongoing consolidation of production capacity at its Vietnam plant to further diversify the supply chain, which has led to an overall decline in operational efficiency. Despite the decrease in the Group's OEM sales revenue, its website sales revenue for the 2025 financial year still achieved modest growth. Notwithstanding the above, while the comprehensive profit attributable to equity shareholders of the Company for the 2025 financial year is expected to decrease, based on the current situation and barring any unforeseen circumstances, the Board remains confident in the Group's financial position. The Group will navigate current challenges and seize new opportunities through diversification strategies, aiming to achieve long-term sustainable growth. The Group remains optimistic about the prospects of its collectible card production business and website sales, and expects to continue expanding its business by strengthening partnerships and broadening its coverage across different market segments.

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