Baby stroller and car seat maker Goodbaby International Holdings Ltd. (1086.HK) warned it expects to report its net profit fell 35% to 45% last year from the HK$356.2 million ($45.7million) it recorded in 2024, implying a 2025 net profit of HK$196 million to HK$231 million.
The company attributed the decline to increased income tax and a decrease in its gross profit due to a slight revenue drop, according to its Monday announcement before the three-day Lunar New Year holiday. The increase in income tax was mainly attributable to more profits in regions with higher tax rates and withholding tax incurred on dividends distributed between the company’s entities.
Shares of Goodbaby opened flat at HK$1.08 on Friday. The stock is down over 30% from its 52-week high.
By Lau Chi Hang
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