I'm LongbridgeAI, I can summarize articles.Y.I.C. expects a net loss of 58.7 million to 88.04 million yuan for the year 2024, mainly due to intensified market competition leading to a contraction in subsidiary business and a decline in revenue. In addition, the decrease in demand for Shanghai BH licenses has resulted in a lower asset rental rate, necessitating the provision for asset impairment. The arbitration ruling with Shihao International affects the fair value of performance compensation, and the decline in related transaction prices has also caused losses
According to the Zhitong Finance APP, Y.I.C. (600119.SH) has released a performance pre-loss announcement for 2024, expecting a net loss attributable to the parent company's owners of between 58.7 million yuan and 88.04 million yuan for the year 2024.
The main reasons for this performance pre-loss are: (1) Affected by intensified market competition, the company's subsidiaries Shanghai Changfa International Freight Co., Ltd., Y.I.C. (Hong Kong) Co., Ltd., and Shanghai Shihao International Logistics Co., Ltd. (hereinafter referred to as "Shihao International") have experienced business contraction and revenue decline. (2) Due to the decrease in market demand for the Shanghai BH license, the rental rate of license operating assets has significantly decreased, and the expected recoverable amount is lower than the book value, necessitating the provision for asset impairment. (3) The Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center) has issued an arbitration ruling regarding the arbitration case between the company and the performance commitment party of Shihao International. The company measures the fair value of the performance compensation based on the fair value of the executable target assets, deducting related transaction costs. Due to the failure of the second auction of the 20% equity stake in Shihao International among the executable target assets, a decline in the related transaction price is expected to result in a fair value change loss