Shijiazhuang ChangShan BeiMing Technology (000158.SZ) releases forecasted pre-loss, estimating a net loss of 580 million to 700 million yuan in the fiscal year 2024.

Shijiazhuang ChangShan BeiMing Technology (000158.SZ) announced its 2024 annual performance forecast, expecting a net loss attributable to shareholders of the listed company of RMB 580 million to 700 million yuan for the full year, and a loss of RMB 650 million to 770 million yuan after deducting non-recurring gains and losses. In 2024, operating income increased compared to the previous year, but due to intense market competition, tightening budgets of government clients, and other factors, the comprehensive gross profit margin decreased year-on-year. Additionally, the expiration of the concerted action agreement with other shareholders of Beiming Technology resulted in the termination of its inclusion in the scope of consolidation, leading to an increase in provision for impairment of trade receivables and a corresponding decrease in profit. During the reporting period, the company completed the equity transfer registration for the disposal and acquisition of assets. In accordance with relevant provisions of the Enterprise Accounting Standards, the company accounted for this asset exchange as a business combination under common control, and included the income, expenses, and profits related to the disposed and acquired assets from January to November 2024 in the company's consolidated income statement. The disposal of assets was affected by multiple factors such as increasing competition in the textile industry, sluggish market demand, and decreasing product prices, resulting in a decrease in sales volume, profitability, and an increase in provision for asset impairment, leading to a significant year-on-year increase in losses. Additionally, the company paid economic compensation to Changshan Hengxin according to the "Asset Exchange and Related Party Transaction Plan," further reducing the net profit attributable to the owners of the parent company for the reporting period.