Key Points from the Announcement
- The Company expects to record a substantial loss of approximately RMB34.2 million in total comprehensive income attributable to its owners for the year ended 31 December 2025.
- This loss marks a deterioration from the previous year’s performance, where a loss of RMB15.8 million was recorded for 2024.
- The main factors contributing to the increased loss include rising production costs related to hydrogenated benzene-based chemicals and liquefied natural gas (LNG), maintenance and calibration exercises on production equipment, and unfavorable pricing trends in both raw materials and finished products.
Details Investors Must Know
- Production Costs Surge: The Group undertook maintenance and calibration of its production facilities during 2025, which led to increased costs in manufacturing its core products—hydrogenated benzene-based chemicals and LNG.
- LNG Pricing Pressure: The average selling price (including tax) of LNG products decreased by approximately 7.3% in 2025, which directly impacted revenue.
- Raw Material Headwinds: The average purchase price of coal gas, the primary raw material, rose by about 5.0%, further squeezing profitability.
- Gross Profit Margin Erosion: The combination of reduced selling prices and higher input costs led to a narrowing of the gross profit margin, exacerbating the loss.
- Unaudited Figures: The loss estimate is based on a preliminary review of unaudited consolidated management accounts. The figures have not been confirmed, reviewed, or audited and may be subject to further adjustments before the final results are announced.
- Timeline for Final Results: The Company expects to publish its annual results announcement by the end of March 2026, where more detailed financial information will be disclosed.
- Board Composition: The announcement also notes the composition of the Board, including executive, non-executive, and independent non-executive directors, which may be relevant for governance considerations.
Implications for Shareholders and Potential Investors
This profit warning is a material event and may be highly price sensitive. The deterioration in financial performance, driven by increased production costs, lower selling prices, and higher raw material prices, signals operational challenges that could affect investor sentiment and the Company’s share value.
Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Henan Jinyuan Hydrogenated Chemicals Co., Ltd., as the announced loss is significantly higher than the previous year and may have a direct impact on market perception and trading activity.
Additional Information
The information released is preliminary and has not yet been audited or reviewed by the Company’s auditors or Audit Committee. Further details will be made available in the official annual results announcement expected by March 2026.
The announcement was authorized by Executive Director Wang Zengguang and released in Hong Kong on 16 March 2026.
Disclaimer
The information provided in this article is based on preliminary, unaudited figures and may be subject to change pending final audit and review. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. This article does not constitute financial advice or a recommendation to buy or sell securities.
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