Hengyang Petrochemical Logistics Limited Issues Profit Warning, Auditor Update, and Regulatory Developments

Key Highlights for Investors

• Material Loss Expected for FY2025: The Group expects to report a significant loss for the financial year ended 31 December 2025, following a loss of RMB15.94 million for the nine months ended 30 September 2025.
• Impact of SDN Inclusion: The Company, its China Holdco subsidiary, and Mr. Gu have been included in the SDN List, severely affecting business operations and revenue, particularly in the China Holdco Group for October and November 2025.
• Auditor Resignation and Reporting Delays: BDO LLP, the Company’s current auditor, has notified its intention to resign due to the SDN Inclusion, but ACRA has not yet consented to this resignation and has requested a replacement audit firm be identified.
• Suspension of Share Trading: Trading of the Company’s shares remains suspended, with no material developments on the petition for removal from the SDN List.
• Possible Extension for Annual Report and AGM: Due to the auditor transition, the Company anticipates seeking an extension for publishing its FY2025 Annual Report (including the Sustainability Report) and convening its AGM.

Details of the Announcement

Hengyang Petrochemical Logistics Limited has issued a comprehensive update to shareholders regarding several significant developments affecting the Group’s financial position and ongoing operations.

Profit Guidance for FY2025

The Company expects to report a material loss for the financial year ended 31 December 2025. This follows a previously disclosed loss of RMB15.94 million for the nine months ended 30 September 2025. The losses have intensified after the Group, its China Holdco subsidiary, and Mr. Gu were placed on the SDN (Specially Designated Nationals) List, resulting in lower revenues for October and November 2025.

Operational and Regulatory Challenges

The inclusion on the SDN List has had a direct and negative impact on the Group’s revenue streams, especially in its China Holdco operations. The Company has noted that there is no material development regarding the petition for removal from the SDN List. As a result, trading in the Company’s shares remains suspended. This suspension is likely to continue until there is a significant change or resolution concerning the Company’s regulatory status.

Auditor Resignation and Compliance Issues

In a further development, BDO LLP, the Company’s current auditor, has served notice of resignation due to complications arising from the SDN Inclusion. However, the Accounting and Corporate Regulatory Authority of Singapore (ACRA) has not yet provided consent for BDO’s resignation and has requested that the Company appoint a replacement audit firm. The Company is actively engaging with several qualified firms to finalize a new appointment and will update shareholders once this is completed.

Due to the auditor transition, the Company anticipates the need to seek an extension for the publication of its FY2025 Annual Report (including the Sustainability Report) and for holding its annual general meeting for FY2025.

Next Steps and Investor Considerations

• The Group will release its FY2025 financial results on or around 28 February 2026.
• Shareholders should note ongoing uncertainties regarding the SDN List status and the associated impact on operations, financial reporting, and trading of shares.
• Further updates will be provided when material developments occur, including the appointment of new auditors and any progress on regulatory matters.

Share Price Sensitivity and Risks

The combination of a projected material loss for FY2025, continued suspension of share trading, auditor resignation, and ongoing SDN List inclusion represent significant risks to shareholder value. These events are likely to materially affect investor sentiment and may have a direct impact on the Company’s share price when trading resumes or if/when the regulatory situation changes.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making any investment decisions. The information herein is based on the latest public disclosures by Hengyang Petrochemical Logistics Limited as of 5 February 2026. Market conditions and regulatory environments may change, affecting the contents and implications of this update.

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