ZHONGHUA GAS (08246) issues profit warning, expecting a net loss of approximately 50.1 million yuan for the 2024 fiscal year, an increase of 1144.3% year-on-year.

ZHONGHUA GAS (08246) announced that the group expects the tax loss after net for the 12 months ending December 31, 2024 (the second interim of 2024) to increase by approximately 1144.3% from the tax loss after net of approximately RMB 4 million in the corresponding period of 2023 to a tax loss after net of approximately RMB 50.1 million in the second interim of 2024. The increase in tax loss after net is mainly due to (i) the reversal of impairment provision for trade receivables decreasing from approximately RMB 66.7 million in the corresponding period to approximately RMB 10.7 million in the second interim of 2024, as the recovery of long-term outstanding trade receivables in the second interim of 2024 was less than the corresponding period; and (ii) the expenses of share payments for equity settlement increasing from approximately RMB 1.6 million in the corresponding period to approximately RMB 26.9 million in the second interim of 2024. This impact was offset by (i) the impairment loss on property, plant and equipment and right-of-use assets decreasing from approximately RMB 26.9 million in the corresponding period to approximately RMB 3.5 million in the second interim of 2024; and (ii) depreciation decreasing from approximately RMB 13.1 million in the corresponding period to approximately RMB 1.9 million in the second interim of 2024.