Shenyang Public Utility Holdings Issues Significant Profit Warning for FY2025

Shenyang Public Utility Holdings Company Limited (Stock code: 747) has issued a critical profit warning to its shareholders and potential investors, providing early guidance on the company’s financial performance for the year ended 31 December 2025. This announcement was made in compliance with the Hong Kong Listing Rules and the Securities and Futures Ordinance regarding inside information disclosures.

Key Points from the Profit Warning Announcement

• Substantial Increase in Losses: The Group expects a significant rise in its loss before tax for FY2025, projecting an increase of approximately 60%–70% compared to the loss before tax reported for FY2024, which amounted to RMB 104,258,000.
• Expected Loss for FY2025: Based on the provided guidance, the anticipated loss before tax for FY2025 could range between RMB 166.8 million and RMB 177.2 million (inferred from a 60%–70% increase over the 2024 figure).
• Primary Reasons for the Deterioration:
  • An increase in loss from changes in fair value of investment properties, indicating that the company’s property portfolio has suffered greater fair value losses this year.
  • A rise in the loss on written-off properties under development for sale, suggesting that certain projects have been impaired or written off, leading to a direct hit on the bottom line.
• Results Not Finalised: The numbers are based on a preliminary assessment of unaudited management accounts and information currently available to the company. The annual results for FY2025 are still being finalized and have not yet been audited or reviewed by the independent auditor or the audit committee.

Important Information for Shareholders

• Price-Sensitive Disclosure: The profit warning is material and price sensitive. The anticipated increase in losses may negatively impact the company’s share price upon market reaction.
• Caution Advised: The Board specifically advises shareholders and potential investors to exercise caution when dealing in the shares of the Company, given the significant deterioration in financial performance.
• Final Results Timeline: The audited annual results for FY2025 are expected to be published in March 2026. Shareholders should closely monitor this upcoming announcement for confirmation of the company’s actual financial performance.

Board and Governance Update

• The announcement was approved by the Board under the leadership of Chairman Zhang Jing Ming. The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, reflecting standard governance practices.

Outlook and Potential Impact

This significant increase in losses, driven by adverse property valuation adjustments and asset write-offs, signals ongoing challenges within the Group’s operations and property portfolio. Should these preliminary results be confirmed in the final audited accounts, investor confidence and share value could be further affected. Shareholders should remain vigilant and review the full-year results once published for a comprehensive understanding of the company’s financial position and future prospects.

Disclaimer: The above article is based on preliminary, unaudited information disclosed by Shenyang Public Utility Holdings Company Limited. Actual results for FY2025 may differ following audit and review. This article does not constitute investment advice. Investors should exercise caution and consult professional advisers before making investment decisions.

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