IRICO NEWENERGY issued a profit warning, expecting a mid-term net loss attributable to the parent company of approximately 290 million to 320 million yuan, a year-on-year turnaround from profit to loss
IRICO NEWENERGY issued a profit warning, expecting a net loss attributable to the parent company of approximately 290 million to 320 million yuan in the first half of 2025, turning from profit to loss year-on-year. The expected operating revenue is between 1.495 billion and 1.525 billion yuan, a year-on-year decrease of approximately 25.21% to 26.68%. Although the sales volume of photovoltaic glass increased by 5.5%, the significant decline in product prices led to a substantial decrease in operating revenue. The company will continue to promote cost reduction, efficiency enhancement, and technological innovation, but the gross profit margin has significantly declined, and some inventory has been subject to impairment provisions
According to the Zhitong Finance APP, IRICO NEWENERGY (00438) announced that the group expects to achieve operating revenue of approximately RMB 1.495 billion to RMB 1.525 billion in the first half of 2025, a decrease of approximately 25.21% to 26.68% compared to the operating revenue of approximately RMB 2.039 billion for the six months ending June 30, 2024 (the first half of 2024). The net loss attributable to the parent company's shareholders in the first half of 2025 is expected to be approximately RMB 290 million to RMB 320 million, a decrease of approximately RMB 294 million to RMB 324 million compared to the net profit of approximately RMB 4.19 million attributable to the parent company's shareholders in the first half of 2024.
The main reasons for the decrease in the group's operating revenue and net profit attributable to the parent company's shareholders are as follows:
The group's sales volume of photovoltaic glass in the first half of 2025 is expected to increase by approximately 5.5% compared to the first half of 2024. However, due to a decline in product prices, the operating revenue in the first half of 2025 is expected to decrease by approximately 25.21% to 26.68% compared to the first half of 2024.
Due to supply-demand contradictions and capacity mismatches, competition in the photovoltaic glass industry has intensified. The group is fully committed to cost reduction and efficiency enhancement, accelerating technological innovation and the research and development of high value-added products, as well as mass production. However, the continuous decline in product prices has led to a significant drop in the gross profit margin of the group's photovoltaic glass business.
Due to the decline in product prices, and in accordance with the principle of prudence, the company has made impairment provisions for certain inventories
