Shanxi Huayang New Material (600281.SH) announced a forecasted net loss of 150 million to 190 million yuan for the year 2024.

Shanxi Huayang New Material (600281.SH) has issued a profit warning for the annual performance of 2024, expecting a net loss attributable to shareholders of the listed company of 150-190 million yuan. The main reasons for the expected loss are as follows: In 2024, the precious metals business is expected to incur a loss of approximately 34 million yuan. The main reason is that despite an increase in platinum sales compared to the same period last year and a decrease in inventory from the beginning of the year, the business is still in a loss-making state due to significant impact from expenses during the period. In 2024, the biodegradable materials and products business is expected to incur a loss of approximately 82 million yuan. This is mainly due to weak demand in the biodegradable materials market, low utilization of production capacity, insufficient operating rates, and high fixed costs, resulting in a loss-making state for the business. Deferred income tax expenses of 39.6 million yuan related to unabsorbed losses confirmed in the 2019 fiscal year will also impact the net profit. On January 7, 2025, the company completed the change in ownership registration for five pieces of land with Taihua Group, therefore, the company did not recognize related land transfer and compensation payments in the 2024 fiscal year.