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Royale Home Swings to Deeper 2025 Loss on Falling Sales and Rising Charges

Story Highlights
  • Royale Home’s 2025 revenue and gross profit declined sharply, pushing shareholder losses to RMB602.8 million.
  • Higher finance costs, heavy impairments and losses from associates drove a deeper annual loss, underscoring rising financial pressure.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Royale Home Swings to Deeper 2025 Loss on Falling Sales and Rising Charges

Meet Samuel – Your Personal Investing Prophet

An announcement from Royale Home Holdings Limited ( (HK:1198) ) is now available.

Royale Home Holdings Limited reported a sharp deterioration in its 2025 financial performance, with revenue falling to RMB381.1 million from RMB525.6 million and gross profit almost halving to RMB19.0 million. The group’s loss attributable to shareholders widened significantly to RMB602.8 million, translating into a basic and diluted loss per share of 24.327 RMB cents.

The deeper loss was driven by heavy finance costs of RMB213.6 million, sizeable provisions for expected credit losses and asset impairments totaling more than RMB119.0 million, and a RMB144.3 million loss from associates, partly offset by gains from disposing of a subsidiary and an associate. These results point to mounting financial pressures, weaker operating efficiency and challenges in Royale Home’s investment and property portfolios, raising concerns for investors about the company’s balance sheet resilience and its ability to restore sustainable profitability.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.11 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

More about Royale Home Holdings Limited

Royale Home Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the home furnishing sector. The group focuses on designing, manufacturing and selling home-related products, serving consumers in mainland China through its various subsidiaries and associated operations in the furniture and property-related segments.

Average Trading Volume: 103,494

Technical Sentiment Signal: Sell

Current Market Cap: HK$254.7M

For detailed information about 1198 stock, go to TipRanks’ Stock Analysis page.

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