ZONQING Environmental Limited Issues Profit Warning for FY2025

Hong Kong – ZONQING Environmental Limited (Stock Code: 1855) has issued a profit warning for the financial year ended 31 December 2025 (FY2025). The announcement, released on 18 March 2026, provides preliminary financial guidance and updates for shareholders and potential investors.

Key Highlights from the Announcement

• Expected Drop in Profit: The Group anticipates recording a profit attributable to shareholders in the range of RMB15.0 million to RMB35.0 million for FY2025. This represents a significant decrease compared to the profit of approximately RMB40.0 million recorded in the previous year, FY2024.
• Main Reason for Profit Decline: The lower profit forecast is mainly due to an increased share of losses from associates and joint ventures. This development could signal ongoing operational challenges or weak performance from investee companies.
• Preliminary Figures: The numbers are based on a preliminary review of unaudited consolidated management accounts. The final audited results may differ, as these figures have not yet been reviewed by the Company’s auditors or audit committee.
• Timing of Final Results: The audited results announcement for FY2025 is expected in late March 2026.
• Board Composition: The Board currently includes Mr. Liu Haitao (vice-chairman), Ms. Wang Yan (executive director), Mr. Sun Juqing (chairman), Ms. Lyu Hongyan and Mr. Shao Zhanguang (non-executive directors), and Mr. Gao Xiangnong, Mr. Yin Jun, and Mr. Lee Kwok Tung Louis (independent non-executive directors).

Important Information for Shareholders

• Potential Price Sensitivity: The anticipated decrease in profit is a material development that could negatively impact ZONQING Environmental Limited’s share price. Investors should closely monitor upcoming announcements, particularly the audited results due in late March 2026.
• Management Caution: The Company has explicitly advised shareholders and potential investors to exercise caution when dealing in its securities, given the uncertainty around the final numbers and the impact of losses from associates and joint ventures.
• Regulatory Compliance: The announcement complies with Rule 13.09 of the Hong Kong Listing Rules and Part XIVA of the Securities and Futures Ordinance, ensuring timely disclosure of inside information to the market.

What Investors Should Watch Next

• The final audited FY2025 results – to be released in late March 2026 – will clarify the actual financial performance and may trigger further share price movement depending on the outcome.
• Investors should also monitor any future disclosures regarding the performance of associates and joint ventures, as these have been identified as the primary cause of profit erosion.

Conclusion

ZONQING Environmental Limited’s profit warning for FY2025 signals a potentially challenging year ahead for the Company, with profits expected to contract notably. The increased losses from associates and joint ventures warrant particular attention. This development is likely to be price-sensitive, and shareholders are urged to stay informed and cautious as further audited results and updates become available.

Disclaimer: The above article is based on preliminary unaudited information and is intended for informational purposes only. It does not constitute investment advice. Investors should consult the Company’s official audited financial statements and seek professional advice before making any investment decisions. The information may be subject to change upon release of the final audited results.

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