Global Bio-Chem (00809) Issues Profit Warning, Expected Net Income for 2025 is approximately HK$100 million to HK$300 million.

Global Bio-Chem (00809) announced that the group is expected to record a net income (before tax) ranging from HK$100 million to HK$300 million for the year ending December 31, 2025, significantly lower than the net income of approximately HK$746 million recorded for the year ending December 31, 2024 (last year). On the other hand, the group expects an increase in revenue and gross profit of approximately 13.9% and 2.8% respectively, rising from around HK$2.001 billion and HK$191 million in the previous year to approximately HK$2.279 billion and HK$196 million for the current year. However, the gross profit margin for the current year is projected to decrease to 8.6% from 9.5% in the previous year. The decrease in gross profit margin and net income (before tax) for the current year is mainly attributed to the following factors: an increase in domestic corn prices since mid-2025 leading to higher operating costs for the group; an anti-dumping investigation launched by the European Union on lysine products from mainland China causing an oversupply in the domestic market, both of which have negatively impacted the group's gross profit margin; and the non-recognition of a one-time gain of approximately HK$1.962 billion following the sale of eight subsidiary companies on December 30, 2024.