Ko Yo Chemical (Group) Limited Issues Significant Profit Warning for FY2025

Key Highlights

• Substantial Increase in Net Loss:
  Ko Yo Chemical (Group) Limited (the Company) has announced, based on a preliminary assessment of its unaudited consolidated management accounts, that it expects to record a significant net loss attributable to equity shareholders of approximately RMB709 million for the year ended 31 December 2025. This marks an increase of about RMB204 million compared to the net loss of approximately RMB505 million for the previous year (2024).
• Declining Gross Profit Margin:
  The company’s average gross profit margin for 2025 is expected to drop to -3.0%, compared to a positive margin of approximately 1.3% in 2024. This negative margin indicates the Group’s products were sold at a loss on average in 2025.
• Significant Impairment Loss on Fixed Assets:
  The increase in net loss is attributed in part to an impairment loss on fixed assets, amounting to approximately RMB245 million.
• Decrease in Average Selling Prices:
  The company reports a decrease in the average selling price of its chemical products and chemical fertilizers in 2025 compared to the prior year, which directly contributed to the diminished gross profit margin.

Details for Shareholders and Investors

• Price-Sensitive Information:
  This substantial increase in losses and the shift to a negative gross profit margin are likely to be price-sensitive and may have a significant impact on the company’s share price.
• Impairment Loss Impact:
  The RMB245 million impairment on fixed assets not only affects the current year’s profitability but also signals possible challenges in asset utilization or valuation, raising concerns about the company’s long-term operating efficiency.
• Profitability Outlook:
  The negative gross profit margin underscores the pressure on the company’s core business, potentially due to market oversupply, weaker demand, or increased competition, all of which are critical points of concern for shareholders.
• Pending Audited Results:
  The figures are based on unaudited management accounts, and may be subject to adjustments. The final audited accounts will be disclosed in the company’s annual report.
• Board Composition:
  As of the announcement date, the Board comprises three executive directors (Mr. Tang Guoqiang, Mr. Zhang Weihua, and Mr. Fan Chao) and three independent non-executive directors (Mr. Xu Congcai, Mr. Le Yiren, and Ms. Lu Yi).
• Date of Announcement:
  This profit warning was issued on 13 March 2026.

Investor Guidance

The company has advised shareholders and potential investors to exercise caution when dealing in the shares of Ko Yo Chemical (Group) Limited in light of the significant deterioration in financial performance.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The financial figures and forward-looking statements are based on preliminary unaudited management accounts and are subject to final adjustments. Investors should refer to the company’s official filings and consult with their financial advisors before making any investment decisions.

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