Q P GROUP (01412) issues profit warning, expecting shareholders' comprehensive earnings for 2025 to be approximately HK$55 million to HK$65 million.

Q P GROUP (01412) announces that the Group is expected to achieve a comprehensive profit attributable to equity shareholders of the Company ranging from approximately HK$55 million to HK$65 million for the financial year ending on December 31, 2025 (the 2025 financial year), compared to approximately HK$129 million for the financial year ending on December 31, 2024 (the 2024 financial year). The Board believes that the expected decrease in profit is mainly attributed to a decrease in original equipment manufacturer (OEM) sales revenue for the Group in the 2025 financial year compared to the 2024 financial year. This is mainly due to a softer consumer sentiment in certain markets leading to a decrease in demand for the Group's products from some major OEM customers, as well as a decline in the gross profit margin of OEM sales. This decline is primarily due to transitional impacts and related costs arising from the Group's ongoing integration of production capacity at its factory in Vietnam, causing a decrease in overall operational efficiency. Despite the decrease in OEM sales revenue, the Group's website sales revenue is expected to experience moderate growth in the 2025 financial year. Despite the expected decrease in comprehensive profit attributable to equity shareholders of the Company for the 2025 financial year as described above, based on the current situation, the Board remains confident in the Group's financial position unless there are any unforeseen circumstances. The Group will address current challenges and seize new opportunities through a diversification strategy in order to achieve long-term sustainable growth. The Group remains optimistic about the prospects of its collectible card production business and website sales, and aims to continue expanding its business by strengthening partnerships and widening its coverage in different niche markets.