IWS issued a profit warning, expecting the loss attributable to shareholders in 2025 to increase by approximately 95% to 104% year-on-year
IWS issued a profit warning, expecting that the loss attributable to shareholders for the fiscal year 2025 will increase by approximately 95% to 104% year-on-year. As of March 31, 2024, the loss attributable to shareholders is approximately HKD 64.7 million. The increase in loss is mainly due to impairment provisions made for the carrying value of equity in a joint venture involved in hazardous waste treatment projects in mainland China, which has been severely impacted by adverse market conditions and overcapacity, leading to intense competition in processing fees that significantly affects profitability and liquidity
According to the announcement from IWS (00923), it is expected that the loss attributable to shareholders for the year ending March 31, 2025 (2025 fiscal year) will increase by approximately 95% to 104%, compared to a loss of approximately HKD 64.7 million for the year ending March 31, 2024.
The announcement stated that the increase in net loss is mainly due to (including) the impairment provision made for the carrying value of the Group's equity in a joint venture engaged in hazardous waste treatment projects in mainland China. The hazardous waste treatment business in mainland China is facing an unfavorable market environment, as well as intense price competition for treatment fees due to overcapacity, which severely impacts the profitability and liquidity of the joint venture
