BRIEF: New Gonow profit sags up to 30% a year after IPO
Australia- and New Zealand-focused recreational vehicle manufacturer New Gonow Recreational Vehicles Inc. (0805.HK) said on Sunday it expects to report a full-year profit of 31 million yuan ($4.5 million) to 40 million yuan for 2025, down 12% to 31.85% year-on-year.
The company, which listed early last year, said its performance hit the skids last year amid macroeconomic volatility and stagnation pressures. That caused consumers to reduce their spending on non-essential items, leading to reduced sales of its core motorhomes. The Reserve Bank of Australia raised interest rates several times during the year, further worsening the situation.
Compounding matters, New Gonow’s new hybrid off-road trailer model remains in its early production phase and has to achieve economies of scale, resulting in higher costs. Intensifying market competition also pressured pricing, leading to negative gross margins for the model. Lastly, New Gonow said its expenses rose last year due to increased upfront investment and sales outlays tied to the expansion of its self-operated stores.
Shares of New Gonow opened flat on Monday and edged down to HK$1.14 in mid-afternoon trading, down 2.6%. The stock is down 8% from its listing price last year.
By Lau Chi Hang
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