KWUNGS AROMA Issues Profit Warning, Anticipates 36 Million Yuan Profit for 2025, Marking Significant Decline

Stock News
Mar 20

KWUNGS AROMA (01925) has announced an expected substantial decrease in net profit for the year ending December 31, 2025. The Group anticipates its net profit will decline by approximately 83 million yuan, or about 70%, falling from around 119 million yuan for the year ending December 31, 2024, to approximately 36 million yuan for the 2025 fiscal year. The Board attributes this significant profit reduction primarily to several factors. Firstly, a decrease in order volume from European clients led to a gross profit reduction of roughly 34.9 million yuan, which is believed to result from anti-dumping duties imposed by the European Union on candle products originating from China. Secondly, the previous year's results included a one-time gain of approximately 21.7 million yuan from the sale of a subsidiary. Thirdly, administrative expenses increased due to the commencement of operations at new production bases in Wuhu, Anhui Province, China, and in Vietnam. Finally, the depreciation of the US dollar against the Chinese Renminbi during the 2025 financial year resulted in reduced revenue from overseas orders denominated in US dollars.

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