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Guan Chao’s Revenue Surges but Loss Widens on Rising Costs

Story Highlights
  • Guan Chao’s revenue and gross profit grew strongly in 2025, but the company still posted an operating loss as expenses climbed.
  • Net and total comprehensive losses widened due to higher costs and currency impacts, leaving profitability and shareholder returns under pressure.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Guan Chao’s Revenue Surges but Loss Widens on Rising Costs

Meet Samuel – Your Personal Investing Prophet

Guan Chao Holdings Limited ( (HK:1872) ) just unveiled an update.

Guan Chao Holdings Limited reported a sharp jump in revenue to S$327.9 million for the year ended 31 December 2025, up from S$190.9 million a year earlier, with gross profit rising to S$29.6 million. Despite stronger top-line performance and increased other income and gains, the Group remained loss-making, citing higher selling, distribution, and administrative expenses.

The company recorded an operating loss of S$3.3 million and a net loss of S$6.0 million, both wider than the prior year as cost pressures outpaced profit growth. Finance costs moderated but were offset by higher operating expenses and a negative tax charge, while contributions from a joint venture and associates were modest, underscoring that the Group’s expansion in scale has yet to translate into sustainable profitability.

Other comprehensive income turned negative overall, as foreign exchange translation losses outweighed fair value gains on equity instruments measured at fair value through other comprehensive income. Total comprehensive expense rose to S$6.5 million from S$2.5 million, signaling that, despite revenue momentum, shareholders continue to face earnings and currency-related headwinds in the current reporting period.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

More about Guan Chao Holdings Limited

Guan Chao Holdings Limited is a Cayman Islands-incorporated company listed in Hong Kong, operating through subsidiaries as a trading and distribution group. The Group generates revenue from the sale of goods and related services, positioning itself within regional commerce and logistics-focused supply chains in Asia.

Average Trading Volume: 1,646,600

Technical Sentiment Signal: Buy

Current Market Cap: HK$3.74B

For a thorough assessment of 1872 stock, go to TipRanks’ Stock Analysis page.

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