KWUNGS AROMA (01925) issued a profit warning, expecting to achieve 36 million RMB in 2025, a substantial decrease of about 70% year-on-year.

KWUNG AROMA (01925) announces that for the year ending December 31, 2025, the Group expects a significant decrease in net profit of approximately RMB 83 million, or about 70%, from RMB 119 million for the year ending December 31, 2024, to RMB 36 million for the year ending December 31, 2025. The Board of Directors believes that the significant decrease in net profit for the current year is mainly due to (i) a reduction in gross profit of approximately RMB 34.9 million, as a result of a decrease in order processing volume from European customers, which is attributed to the imposition of anti-dumping duties by the European Union on candle products manufactured in the People's Republic of China; (ii) one-time gains of approximately RMB 21.7 million from the sale of subsidiary companies for the year ending December 31, 2024; (iii) an increase in operating expenses due to the launching of new production bases in Wuhu City, Anhui Province, China, and Vietnam; and (iv) a depreciation of the US dollar against the RMB for the year ending December 31, 2025, leading to a decrease in overseas order income denominated in USD.