C SUCCESS FIN issues profit warning, expecting mid-term net income to decrease by approximately 80%-85% year-on-year
C SUCCESS FIN issued a profit warning, expecting net income for the six months ending June 30, 2025, to decrease by approximately 80%-85% year-on-year. The main reasons include no revenue generated from energy storage system sales and a significant decline of about 90%-95% in net income from guarantee services. Despite the substantial decrease in net income, the group's loss amount has decreased due to unrecognized impairment losses
According to the announcement from C SUCCESS FIN (03623), the group expects to achieve a significant decrease in net income for the six months ending June 30, 2025, compared to the same period last year (i.e., the six months ending June 30, 2024), with a decline range of approximately 80% to 85%. The loss during the reporting period is expected to decrease by about 65% to 75% compared to the same period last year.
The significant decline in net income during the reporting period is mainly attributed to: (i) the energy storage system sales business failing to generate any revenue, primarily due to intense competition in the South African energy storage system market, and no new sales orders were signed with distributors during the reporting period; and (ii) the guarantee business experiencing a net income decrease of approximately 90% to 95% compared to the same period last year, mainly due to a slowdown in market financing demand and weakened market investment confidence.
The reduction in the group's loss during the reporting period is mainly due to the absence of any impairment losses recognized for properties, plants, and equipment during the reporting period, whereas approximately 15.6 million yuan of impairment losses were recognized in the same period last year
