YUANHENG GAS issued a profit warning, expecting an annual net loss attributable to shareholders of approximately 2.1 billion to 2.5 billion yuan
YUANHENG GAS issued a profit warning, expecting a net loss attributable to shareholders of approximately HKD 2.1 billion to HKD 2.5 billion for the fiscal year 2025, mainly due to the high uncertainty regarding the recoverability of prepayments and trade receivables, resulting in a significant increase in impairment loss provisions. The net loss for the fiscal year 2024 was HKD 171 million, with a net loss attributable to shareholders of HKD 164 million
According to the announcement from YUANHENG GAS (00332), the group expects to incur a significant net loss of approximately RMB 2.2 billion to RMB 2.6 billion for the fiscal year 2025, and a net loss attributable to shareholders of approximately RMB 2.1 billion to RMB 2.5 billion. In comparison, the net loss for the previous fiscal year ending March 31, 2024, was approximately RMB 171 million, with a net loss attributable to shareholders of approximately RMB 164 million.
The board believes that the significant losses for the fiscal year 2025 are primarily due to: for a Chinese entity's prepayments and trade receivables, the recoverability of these prepayments and trade receivables has become highly uncertain and remains unpaid as of March 31, 2025, leading to a substantial increase in the impairment loss provision recognized under the expected credit loss model to approximately RMB 1.647 billion (compared to approximately RMB 2 million for the fiscal year 2024); and for a Singapore client's receivables, the recoverability of these trade receivables has also become highly uncertain and remains unpaid as of March 31, 2025, resulting in a significant increase in the impairment loss provision recognized under the expected credit loss model to approximately RMB 564 million (compared to approximately RMB 161 million for the fiscal year 2024)
