Y.U.D. Yangtze River Investment Industry (600119.SH) announces an expected loss, with a projected net loss for 2024 of 58.7 to 88.4 million yuan.

Y.U.D. Yangtze River Investment Industry (600119.SH) announced a pre-loss forecast for the 2024 annual performance, with an estimated net loss attributable to the owners of the parent company of 58.7 million to 88.04 million yuan in 2024. The main reasons for the expected loss in this period are: (1) the business contraction and revenue decline of the company's subsidiaries Shanghai Changfa International Freight Co., Ltd., Y.U.D. Yangtze River Investment Industry (Hong Kong) Co., Ltd., and Shanghai Shihao International Logistics Co., Ltd. due to intensified market competition; (2) a significant decrease in the operating asset rental rate of Shanghai BH licenses due to reduced market demand, leading to the expectation of a lower recoverable amount than the book value and the need for asset impairment provision; (3) the Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center) has issued an arbitral award on the arbitration case between the company and Shihao International regarding performance commitments. The company measured the fair value of the performance compensation based on the fair value of the executable assets deducted by the relevant transaction costs. Due to the unsuccessful second auction of 20% equity stake in Shihao International within the executable assets, it is expected that the decreased transaction price will result in a fair value change loss.