CHINNEY ALLI (00385) Has Issued a Profit Warning, Anticipating a Year-on-Year Decrease in Net Profit for 2025 of no more than 65%

CHINNEY ALLI (00385) announced that the Group is expected to reduce its annual net profit by no more than 65% for the year ending December 31, 2025 compared to the year ending 2024, with a net profit of 82.5 million Hong Kong dollars. The Board of Directors believes that the decrease in net profit is mainly due to the following factors: (a) a decrease in revenue and gross profit from the Group's construction services segment, resulting in operating losses in that segment. This is mainly due to several large projects being mostly completed in the second half of 2025, while new projects are still in the early stages and contribute minimal profits; (b) the impact of the US-China trade war on the Group's sales and gross profit from its plastic and chemical raw material products segment, leading to operating losses in that segment; (c) due to the weak property market in Hong Kong and mainland China, the Group's property values have decreased. Despite these challenges, the overall financial position of the Group remains solid.