VESON HLDG issued a profit warning, expecting a net loss attributable to shareholders of approximately 14.5 million yuan for the interim period, a year-on-year turnaround from profit to loss
VESON HLDG issued a profit warning, expecting to record a net loss attributable to shareholders of approximately HKD 14.5 million for the six months ending June 30, 2025, compared to a net profit of approximately HKD 5.5 million in the same period last year. Although sales of ODM battery products increased by 5% year-on-year, sales revenue did not grow due to a decline in selling prices. Management stated that the increased administrative expenses were mainly used to enhance employee retention and drive innovation, which will have a short-term impact on operating profit
According to the announcement from VESON HLDG (01399), the group preliminarily expects to incur a consolidated net loss attributable to owners of approximately RMB 14.5 million for the six months ending June 30, 2025 (the review period), compared to a consolidated net profit attributable to owners of approximately RMB 5.5 million for the same period last year.
Based on the information currently available to the board, over 90% of the group's sales revenue comes from ODM business, with the majority of this revenue derived from the smartphone market within the consumer electronics sector. During the review period, the customer and product structure of the ODM business remained largely unchanged. The overall sales volume of ODM battery products in the first half of 2025 increased by approximately 5% year-on-year; however, due to a general decline in selling prices, sales revenue did not see an increase compared to the previous year. Although the overall gross profit margin of ODM products improved compared to the same period last year, the significant rise in administrative expenses during the review period, mainly due to increased employee benefits, research and development, and technical service costs, resulted in a consolidated net loss for the period. Management believes that the increase in these expenses aims to enhance employee retention and continuously drive innovation in industrial design and artificial intelligence applications to support the sustainable development of the group's future business. Therefore, these expenses only have a temporary impact on the group's operating profit
