EGL Holdings (06882) issues profit warning, expecting a net profit attributable to shareholders of approximately HK$35 million in 2025, a decrease of approximately 51% year-on-year.

EGL HOLDINGS (06882) announced that it is expected to achieve a net comprehensive profit attributable to owners of the company of approximately HK$35 million for the year ending December 31, 2025 (2025 fiscal year), a decrease of about 51% compared to the net comprehensive profit attributable to owners of the company of approximately HK$71 million for the year ending December 31, 2024. The significant decrease in profit is attributed to various factors. In 2025, the global economic environment is facing widespread challenges, mainly due to escalating geopolitical tensions, escalating international trade disputes, and continuous fluctuations in tariff policies. These factors have increased market uncertainty, hindering global trade and investment flows. In addition, in the first half of the 2025 fiscal year, a rumor spread widely on social media claiming that a Japanese manga artist had predicted a major earthquake in Japan on July 5, 2025, as early as the 1990s. As the group's tourism-related products and services are mainly focused on Japan, this unsubstantiated speculation severely affected Japanese tourism, resulting in a significant decrease in the number of Hong Kong visitors to Japan, despite Japan being a popular tourist destination for Hong Kong residents for a long time. Ultimately, the predicted earthquake did not occur, and the rumor was proven to be unfounded. As a result, public interest in traveling to Japan gradually recovered, and public confidence also increased. Despite this recovery, the group's tourism-related business saw a significant decline in revenue and gross profit in the 2025 fiscal year, mainly due to the combined impact of the global economic conditions and the temporary contraction in Japanese tourism caused by the unsubstantiated rumor. Although the hotel business division of the group performed satisfactorily and showed strong growth, the aforementioned adverse factors collectively led to a significant decrease in the group's overall profit in the 2025 fiscal year.