I'm LongbridgeAI, I can summarize articles.YICHEN IND issued a profit warning, expecting to record a consolidated net loss of approximately 50.8 million yuan for the year ending December 31, 2024, a significant decline from the consolidated net income of approximately 50.3 million yuan in 2023. The loss is mainly due to the need to recognize impairment losses of approximately 64.2 million yuan, and an increase in losses related to trading financial assets of approximately 68.1 million yuan, affected by a weak macroeconomic environment and an extended accounts receivable collection period. The product gross profit decreased by approximately 38.2 million yuan
According to the Zhitong Finance APP, YICHEN IND (01596) announced that it expects to incur a consolidated net loss of approximately RMB 50.8 million for the year ending December 31, 2024. This is a reversal from the consolidated net profit of approximately RMB 50.3 million for the year ending December 31, 2023.
The announcement stated that the decline in financial performance is primarily due to the following reasons: an estimated impairment loss of approximately RMB 64.2 million needs to be recognized for the year ending December 31, 2024, compared to an impairment loss of approximately RMB 36.9 million recognized for the year ending December 31, 2023. This is mainly due to the weak macroeconomic situation, extended collection periods for accounts receivable, and an increase in credit impairment losses recognized by the company based on the expected credit loss model.
For the year ending December 31, 2024, the company expects to recognize a fair value change loss related to financial assets held for trading and investment losses from the disposal of financial assets held for trading of approximately RMB 68.1 million, compared to a fair value change gain related to financial assets held for trading and investment losses from the disposal of financial assets held for trading of approximately RMB 49.1 million for the year ending December 31, 2023. The increase in fair value change losses and investment losses related to financial assets held for trading is mainly due to price fluctuations of stocks in Hong Kong-listed companies previously held by the company, and as of December 31, 2024, the company no longer holds stocks in Hong Kong-listed companies.
Affected by the progress of railway project construction and changes in product structure, the company's gross profit from products decreased by approximately RMB 38.2 million for the year ending December 31, 2024