Huaibei GreenGold Industry Investment Co., Ltd. Issues Profit Warning for FY2025

Key Points from the Announcement

• Profit Warning Issued: Huaibei GreenGold Industry Investment Co., Ltd. (“the Company”) has issued a profit warning for the financial year ended 31 December 2025 (the “Reporting Period”).
• Expected Financial Performance: The Group anticipates recording a loss attributable to equity shareholders in the range of RMB 25.0 million to RMB 35.0 million for FY2025. This is a further deterioration compared to the loss of approximately RMB 22.0 million reported for FY2024.
• Reasons for the Loss:
  • A sharp decline and even suspension of operations in the Company’s concrete business.
  • Further decline in aggregate prices during the Reporting Period.
  • Additional increase in the provision for impairment loss of property, plant, and equipment.
• Nature of the Announcement: The figures are based on a preliminary review of unaudited consolidated management accounts and have not yet been reviewed by the Company’s audit committee or audited by external auditors. Final audited results are expected to be published by the end of March 2026.

Important Information for Shareholders & Investors

• Potential Share Price Impact: The announcement of increased losses—driven by operational declines and asset impairment—could be viewed negatively by the market and may put downward pressure on the Company’s share price.
• Concrete Business Issues: The Company’s concrete business has suffered significant operational setbacks, including suspensions. This is a critical segment and the disruption underscores ongoing operational and market challenges.
• Asset Impairment: The heightened provision for impairment loss on property, plant, and equipment signals possible overcapacity or underutilization of assets. This could affect the Company’s asset quality and future earning power.
• Aggregate Price Decline: Further declines in aggregate prices suggest persistent weakness in the core construction material markets in which the Company operates, with broader implications for revenue and profit margins.
• Preliminary Nature of Results: Investors should note that these figures are preliminary estimates and subject to change once the audit process is complete.
• Caution Advised: The Board explicitly advises shareholders and potential investors to exercise caution when dealing in the securities of the Company due to the uncertainties and negative outlook presented.

Board and Management Update

The announcement was formally issued by Liu Yong, Chairman of the Board and Executive Director, on 13 March 2026. The current Board consists of four executive directors and three independent non-executive directors.

What’s Next?

The final audited financial results for FY2025 are expected to be released by the end of March 2026. Investors should monitor these developments closely, as the final outcome may further impact market sentiment and the Company’s share price.

Disclaimer

This article is based on publicly disclosed information and preliminary estimates provided by Huaibei GreenGold Industry Investment Co., Ltd. Actual results may differ materially following audit review. Investors should exercise caution and consult professional advisers before making investment decisions. The author and publisher accept no liability for any investment actions taken based on this report.

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