JIA YAO HLDGS (01626) announced its 2025 financial performance, revealing a significant downturn in profitability. Revenue amounted to approximately 645 million yuan, representing a decrease of about 16.3% compared to the previous year. Profit attributable to owners of the company was approximately 1.83 million yuan, a sharp decline of 96.38% year-on-year. Earnings per share stood at 0.003 Hong Kong dollars.
Sales from the e-cigarette division decreased by approximately 22.4% to about 534.4 million yuan. This reduction was primarily due to the group's adjustment of its sales strategies in multiple international markets during 2025 in response to recent volatility in global e-cigarette regulations and international trade instability. These strategic shifts negatively impacted sales orders, particularly in Asia, where revenue fell by approximately 19.3% compared to the same period in 2024 to about 413 million yuan, and in Europe, where revenue declined by approximately 37.8% to 68.9 million yuan.
Several Asian countries, including Malaysia, the Philippines, and Indonesia, have implemented stricter regulatory frameworks involving mandatory product certification, excise tax stamps, and graphic health warnings. In certain European nations, regulatory authorities have tightened restrictions on e-cigarette flavors, marketing practices, and age verification requirements.
The group plans to collaborate closely with key local distributors in target markets to promptly address the impacts of recent global regulatory fluctuations and international trade turbulence. Additionally, the group will concentrate resources on developing new overseas markets to diversify revenue sources and mitigate risks. In 2025, the group successfully expanded into new markets including Canada, Germany, France, the Netherlands, Georgia, and Croatia.
Management expressed confidence that once policies mature in various countries, sales from the e-cigarette division will contribute to the group's long-term stable development. This optimism is based on the group's thorough market positioning and preparatory work conducted with local distributors in target markets.