Zhixin Group Holding Limited Issues Profit Alert: Significant Reduction in Net Loss for FY2025

Zhixin Group Holding Limited (Stock code: 2187), listed on The Stock Exchange of Hong Kong, has released a profit alert announcing an expected significant reduction in net loss for the financial year ended 31 December 2025. This update is made in accordance with the Listing Rules and Inside Information Provisions, and is aimed at keeping shareholders and potential investors informed of key financial developments.

Key Highlights from the Announcement

• Expected Net Loss for FY2025: The Group anticipates recording a net loss of approximately RMB58.0 million for the year ended 31 December 2025.
• Comparison with Previous Year: This represents a notable improvement compared to the net loss of approximately RMB75.2 million for the year ended 31 December 2024.
• Main Reason for Reduction: The reduction in loss is primarily attributable to the reversal of net impairment losses, stemming from the recovery of trade receivables that had impairment loss provisions in prior years.
• Offsetting Factors: The improvement was partially offset by a decrease in total revenue and an increase in gross loss.

Important Information for Shareholders

• Price Sensitivity: The expected reduction in net loss is a material development and could have a positive impact on the share price, especially as it signals improved financial health and potential recovery in the Group’s operations.
• Recovery of Trade Receivables: The reversal of impairment losses due to the recovery of previously impaired trade receivables is significant. This suggests improved credit control and collection efforts, which may enhance investor confidence.
• Revenue and Gross Loss Concerns: Despite the reduced net loss, shareholders should note the decrease in total revenue and increase in gross loss, which may indicate underlying operational challenges that need to be addressed for future profitability.
• Unaudited Results: The figures disclosed are based on a preliminary review of unaudited consolidated management accounts. The results are subject to further review, finalisation, and audit. The final results may differ from the estimates provided.
• Annual Results Announcement: The audited results for FY2025 are expected to be released by the end of March 2026. Investors are advised to carefully review the final results announcement once published.
• Caution Advised: Both shareholders and potential investors are urged to exercise caution when dealing in the shares of Zhixin Group Holding Limited, given the preliminary nature of the financial information and the potential for adjustments.

Board Composition

The Board comprises a mix of executive and independent non-executive directors:

• Executive Directors: Mr. Ye Zhijie (Chairman), Mr. Huang Wengui, Mr. Lai Quanshui, Mr. Qiu Limiao, Mr. Ye Dan, Mr. Huang Kaining
• Independent Non-Executive Directors: Ms. Wong Tuen Sau, Mr. Cai Huinong, Mr. Jiang Qinjian

Potential Impact on Share Price

The material reduction in net loss, especially driven by the recovery of impaired trade receivables, may be seen as a positive signal by investors. However, the decrease in total revenue and increase in gross loss could temper enthusiasm. The final audited results and further operational details will be key in determining the longer-term share price trajectory.

Disclaimer

The information presented here is based on a preliminary review of unaudited accounts and is subject to change. Investors should not rely solely on this article for their investment decisions and are advised to review the final audited results and all official announcements by the company. This article does not constitute investment advice.

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