Goodbaby International(01086) issues profit warning, expecting net profit in 2025 to decrease by approximately 35% to 45% year-on-year

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Tian Tong Finance APP News: Goodbaby International (01086) announced that for the year ending December 31, 2025, the group's net profit is expected to decrease by approximately 35% to 45% from the HKD 356 million net profit in the same period of 2024. The decline is mainly due to reduced gross profit and increased income tax, partially offset by improvements in net financial costs. The decrease in gross profit is primarily attributed to a slight reduction in the group's revenue, while the group's gross profit margin rebounded in the second half of 2025. The increase in income tax is mainly due to higher profits in regions with higher tax rates and withholding taxes resulting from dividend distributions among group entities. The improvement in net financial costs is due to lower loan principal and interest rates.
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