It’s not often that a company’s announcement that it fell into the red has the result of lifting its shares. But that’s exactly what happened with small kitchen appliance maker JS Global Lifestyle Co. Ltd. (1691.HK), whose announcement last week warned of just such swing into the loss column for 2025.
JS Global said it expected to record a loss of up to $22.5 million for 2025, reversing an $8.8 million profit the previous year. But it also said its adjusted net profit last year more than quadrupled to $29 million from $7.1 million in 2024. Such adjusted figures typically exclude non-cash items like stock-based employee compensation to give investors a better idea of how a company’s core operations are performing.
Investors were clearly focused on the adjusted figure when they bid up JS Global’s shares by 4.6% the day after the announcement, which showed the company was on track with a recent buildup of its business in the Asia-Pacific (APAC) region. The company blamed its swing to the red on losses related to restricted share awards and a decrease in income from SharkNinja (SN.US), a former subsidiary that was spun off in 2023 and now operates independently.