IFBH(06603.HK)Profit Warning: Expected 2025 Adjusted Net Profit to Decrease by 20% to 25%

Gelonghui February 13 — IFBH (06603.HK) announced that for the fiscal year ending December 31, 2025 (“this year”), net profit is expected to decrease approximately 27% to 32% compared to the same period in 2024, while adjusted net profit (non-International Financial Reporting Standards measure) (excluding listing-related professional expenses) (“adjusted net profit”) is expected to decrease approximately 20% to 25% compared to the same period in 2024.

The announcement states that the expected decrease in net profit and adjusted net profit for this year is mainly due to a combination of operational and strategic factors. The performance of one of our smaller brands, Innococo, has been temporarily challenged by operational difficulties rather than significant demand for its products, leading to a substantial year-over-year decline in revenue and impacting the group’s overall revenue growth. Additionally, the group’s gross profit margin was adversely affected by unfavorable foreign exchange fluctuations during the period, but at the same time, strategic marketing investments were made for Innococo (including hiring new brand ambassadors and launching promotional activities) to strengthen the brand’s market position and drive future growth. The group has taken strategic actions to enhance operations and improve execution capabilities to ensure Innococo’s sustainable growth in the future.