Chaoda Modern Agriculture (Holdings) Limited Issues Profit Warning for Interim Period Ended 31 December 2025

Key Highlights

• Profit Warning Issued: Chaoda Modern Agriculture (Holdings) Limited has issued a profit warning for the six-month period ended 31 December 2025.
• Expected Loss: The Group anticipates a loss attributable to owners of the Company of approximately RMB10 million for the period, marking a significant increase from the RMB7 million loss recorded in the same period last year (31 December 2024).
• Impairment Losses: The main driver of the increased loss is a rise of approximately RMB3 million in impairment losses recognised on trade receivables, compared to the previous year.
• Interim Results Announcement: The unaudited interim results for the period ended 31 December 2025 are expected to be formally announced on 27 February 2026.

Details for Investors

Profit Warning Context: This announcement has been made in accordance with Rule 13.09(2)(a) of the Listing Rules on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions of the Securities and Futures Ordinance (Chapter 571). The Board has conducted a preliminary review of the unaudited consolidated management accounts, and the expected loss represents a worsening of the Group’s financial position.

Impairment Losses: The increase in impairment losses on trade receivables is a notable concern. Impairment losses indicate that the Group has assessed some of its trade receivables as unlikely to be collected, resulting in a direct negative impact on profitability. This development may signal underlying issues in customer credit quality or collection, which could have further implications for cash flow and future earnings.

Impact on Shareholders: Shareholders and potential investors should be aware that the escalation in losses and impairment provisions could be price sensitive. This information may lead to negative sentiment in the market, potentially affecting the share price of Chaoda Modern Agriculture. Investors are advised to exercise caution when dealing in the Company’s securities, as the announcement is based on preliminary figures and subject to final audit review.

Corporate Governance: The announcement also confirms the composition of the Board, which includes executive directors Mr. Kwok Ho and Mr. Kuang Qiao, non-executive director Mr. Ip Chi Ming, and independent non-executive directors Mr. Fung Chi Kin, Mr. Tam Ching Ho, and Ms. Li Ying. The Board and management are actively monitoring the situation and will announce the finalized results at the end of February 2026.

What Should Investors Do?

• Monitor further announcements, especially the unaudited interim results on 27 February 2026.
• Assess the risk posed by increased impairment losses and the potential for continued financial challenges.
• Consider the possibility of share price volatility and act with caution pending further updates from the Company.

Disclaimer

This article has been prepared based on publicly available information from Chaoda Modern Agriculture (Holdings) Limited’s profit warning announcement. Investors should note that the financial figures are preliminary and unaudited. The final results may differ after the completion of the audit. The information provided herein does not constitute investment advice. Investors are encouraged to seek professional advice before making any investment decisions and to exercise caution when dealing in the securities of Chaoda Modern Agriculture (Holdings) Limited.

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