BRIEF: Huabao profit doubles in first half after taking asset impairments in 2024

Vaping products maker Huabao International Holdings Ltd. (0336.HK) said on Friday its profit roughly doubled in the first half of 2025, as it returned to stronger profitability after taking various asset impairments a year earlier.

The company said it expects to report a profit of between 151.2 million yuan ($21 million) to 177.2 million yuan for the first six months of 2025, representing a 91.3% to 124.3% increase, respectively, from the 79 million yuan it reported in the first half of 2024.

“Such an increase was primarily attributable to the recognition of an impairment loss of approximately 29.3 million yuan on goodwill, an impairment loss of approximately 20.2 million yuan on other assets, and a provision for impairment of approximately 48.0 million yuan related to an investment in an associate during the same period in 2024, whereas no similar impairment provisions were recognized during the (2025) period,” it said.

On an adjusted basis, which excludes share-based compensation expenses and impairment-related losses, the company said it expects to report a pre-tax profit of 223.6 million yuan to 249.6 million yuan for the first half of 2025, up 1.1% to 12.9% year-on-year, respectively.

Huabao shares opened up on Monday and were up 5.2% at HK$3.42 in early trade. The stock is up 54% this year.

By Doug Young

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