Kwung’s Aroma Profit Slumps as EU Duties Hit Candle Business

The latest update is out from Kwung’s Holdings Limited ( (HK:1925) ).

Kwung’s Aroma Holdings reported a decline in performance for the year ended 31 December 2025, with revenue falling 11.9% to RMB882.1 million and profit dropping 69.9% to RMB35.8 million, while gross margin also narrowed. The company did not propose a dividend, reflecting pressure on earnings as it navigates a challenging operating environment.

The group has been hit by the European Commission’s anti-dumping investigation into candle imports from China, which led to a provisional 70.9% duty on its PRC-made candle products sold into the EU. In response, Kwung’s Aroma accelerated the establishment of a production base in Vietnam, which began operations in 2025 and is intended to secure stable capacity for global customers and mitigate the impact of EU trade measures on its business.

The most recent analyst rating on (HK:1925) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

More about Kwung’s Holdings Limited

Kwung’s Aroma Holdings Limited is a Hong Kong-listed company that designs and manufactures home decoration and home fragrance products, with core offerings including scented candles and fragrance diffusers. The group focuses primarily on wholesale customers and operates production bases in mainland China and, more recently, Vietnam to serve global markets while maintaining quality and cost control.

Average Trading Volume: 66,596

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$498.2M

See more data about 1925 stock on TipRanks’ Stock Analysis page.