Add New Energy Investment Holdings Group Limited Issues Profit Warning for FY2025

Key Points from the Announcement

• Profit Warning: Add New Energy Investment Holdings Group Limited (the “Company”) has issued a profit warning based on a preliminary review of its unaudited consolidated management accounts for the year ended 31 December 2025. The Company expects to incur a net loss of approximately RMB87 million attributable to owners of the Company, a significant swing from a profit of RMB62 million recorded for the year ended 31 December 2024.
• Key Reasons for the Turnaround:
  • Impairment Loss: The Company will recognize an impairment loss of approximately RMB51 million on the non-financial assets of its Zhuge Shangyu Ilmenite Mine cash-generating unit (CGU). This impairment is a major factor contributing to the anticipated loss.
  • Absence of One-Off Gains: In FY2024, the Company recorded one-off disposal gains of approximately RMB123.3 million from the disposal of mining rights for the Yangzhuang Iron Mine, related assets, and an exploration right. No comparable gains are expected in FY2025, further impacting the bottom line.
• Pending Final Results: The financial results for FY2025 are still being finalized. The current figures are based on preliminary management accounts and may be subject to further adjustments. The results have not yet been reviewed by the Audit Committee or audited by the independent auditors.
• Disclosure and Caution: The Company expects to publish its final annual results by the end of March 2026. Investors are urged to exercise caution when dealing in the Company’s securities until the official results are released.
• Corporate Governance: The announcement also lists the current composition of the Board, including executive, non-executive, and independent non-executive directors led by Chairperson Wei Jiaming.

Important Shareholder Information & Potential Price Sensitivity

• Significant Loss Expected: The transition from a profit in 2024 to a loss in 2025 is substantial and is likely to be interpreted negatively by the market, potentially resulting in share price volatility.
• Impairment and Non-Recurring Gains: The impairment on non-financial assets and the absence of the previous year’s one-off disposal gains are both material and non-recurring events. Investors should note that these items have a direct and significant impact on reported earnings.
• Uncertainty Remains: Since the final results have not been audited and are subject to further adjustments, there is an element of uncertainty regarding the final reported numbers.
• Regulatory Compliance: The announcement was made in accordance with Rule 13.09 of the Hong Kong Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance, reflecting the Company’s commitment to timely disclosure of price-sensitive information.

Board Statement and Timeline

The board, under the leadership of Chairperson Wei Jiaming, has assured shareholders that the Company is in the process of finalizing its annual results, expected to be released by the end of March 2026. Investors are urged to monitor further announcements and act with caution in the interim.

Conclusion

The profit warning issued by Add New Energy Investment Holdings Group Limited is a material development that could significantly impact the Company’s share price. The anticipated loss, driven by asset impairments and the absence of last year’s exceptional gains, marks a notable shift in the Company’s financial performance. Shareholders and potential investors should stay alert for the official results announcement and consider the risks presented by the current uncertainty.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors should exercise their own judgment and consult professional advisers before making any investment decisions. The information is based on unaudited figures and may be subject to change.

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