JIA YAO HLDGS (01626) issues profit warning. It is estimated that the annual net profit after tax will be approximately RMB 48 million to RMB 55 million.

JIA YAO HLDGS (01626) announced that the group is expecting to achieve a net profit after tax of approximately RMB 48 million to RMB 55 million for the year ending December 31, 2024. This is a decrease from the net profit after tax of approximately RMB 136 million for the year ending December 31, 2023. The decrease in net profit after tax is mainly due to (i) increased investment in expanding the electronic cigarette business; (ii) a decrease in the unit selling price of the paper cigarette packaging division's sales orders; and (iii) recent global regulatory fluctuations affecting the profitability of the electronic cigarette division for the year ending December 31, 2024.