MOKINGRAN (02585) issues profit warning, expecting a decrease of approximately 50% to 59% in net profit attributable to owners of the company for the year 2025.

MOKINGRAN (02585) announced that the group expects to achieve revenue of approximately 19.72 billion to 22.77 billion yuan in 2025, an increase of approximately 0% to 16% year-on-year; overseas revenue is expected to be around 307 million to 374 million yuan, an increase of approximately 119% to 167% year-on-year; net profit is expected to be approximately 91 million to 111 million yuan, a decrease of approximately 45% to 55% year-on-year; profit attributable to owners of the company is expected to be 77 million to 94 million yuan, a decrease of approximately 50% to 59% year-on-year. The announcement stated that the increase in the group's revenue and overseas revenue in 2025 is mainly due to the continuous improvement of the group's overseas layout and the effective market expansion in the region, jointly driving the steady increase in business scale and revenue. The decrease in profit is mainly attributed to the losses incurred from the group's Au (T + D) contracts and gold leasing, with an expected total loss of 898 million to 1.097 billion yuan in 2025, an increase of approximately 43% to 75% year-on-year. The group entered into Au (T + D) contracts solely to hedge against gold price fluctuations. Due to the continuous rise in gold prices in 2025, the group's Au (T + D) contracts and gold leasing resulted in losses, which are reflected in the company's comprehensive income statement under the item "other income and expenses". However, profits generated from the rise in gold prices are generally reflected only when products are sold, and the increased value of unsold inventory due to the rise in gold prices is not reflected. When the company sells products at current market prices, the profits gained from the rise in gold prices offset the adverse impact of the losses from Au (T + D) contracts and gold leasing on net profit. The losses from Au (T + D) contracts and gold leasing in the first half of 2025 were reversed as the company sold products at market prices, turning a loss of 64 million yuan for the six months ending June 30, 2025 to an expected net profit of 91 million to 111 million yuan for the full year 2025.