WG ENV TECH issued a profit warning, expecting an annual loss attributable to shareholders of approximately HKD 47 million to HKD 49 million, a year-on-year turnaround from profit to loss

According to the announcement from WG ENV TECH (01845), compared to the profit attributable to the company's owners of RMB 1.8 million for the year ending December 31, 2023, it is expected that there will be a loss attributable to the company's owners of approximately RMB 47 million to RMB 49 million for the year ending December 31, 2024. The anticipated loss is mainly due to (including) the following for the year 2024: 1) Based on the assessment results from an independent third-party appraiser, a total impairment of approximately RMB 27 million to RMB 29 million will be recognized for the Qingchuan anaerobic cracking project and the Zibo waste paper residue project. In order to concentrate the group's resources on developing resource recycling projects and due to concerns about the commercial prospects of these two projects, the group's management has carefully decided to terminate the cooperation agreements with the corresponding partners for both projects in the first quarter of 2025. The independent third-party appraiser has also conducted project valuations based on the latest situation of the projects and the subsequent disposal plans proposed by the group's management. Therefore, the group's financial statements for 2024 will recognize impairments for these two projects; and 2) An impairment loss of approximately RMB 7 million to RMB 9 million will be recognized for the group's accounts receivable and contract assets