Company SILK RD ENERGY (08250) issues a profit warning, expecting a comprehensive loss attributable to shareholders of approximately HK$18.5 million for the year.

SILK RD ENERGY (08250) announces that, based on the preliminary review of the unaudited comprehensive management accounts of the Group, the Group is expected to record an unaudited comprehensive loss attributable to owners of the Company of approximately HK$18.5 million for the year ended June 30, 2024 ("Full Year Results"), compared to a profit of approximately HK$1.5 million in the same period last year. The Board believes that the deterioration in the Group's performance is mainly attributed to the recoverability issues of receivables after the slowdown in the Chinese economy, as well as fair value losses on financial assets recognized at fair value through profit or loss. The expected impairment losses under the credit loss model for receivables and financial assets recognized at fair value through profit or loss are approximately HK$8.1 million and HK$10.8 million respectively.