CHINA ENV RES (01130) issued a profit warning, expecting the annual comprehensive loss to decrease by no less than 35% year-on-year.

CHINA ENV RES (01130) announced that it expects the group's comprehensive loss for the year ending June 30, 2025 to decrease by not less than 35% compared to the loss for the same period in 2024, which was approximately HK$72.1 million. The Board believes that the reduction in loss is due to the comprehensive impact of the following factors for the year ending June 30, 2025: (i) a decrease in revenue to approximately HK$60.7 million due to decreased demand for recycled metals and lower sales of automotive parts, leading to a decrease in gross profit to approximately HK$13.3 million; (ii) other income, gains, and losses decreased to approximately HK$1.6 million; (iii) administrative and operating expenses decreased to approximately HK$35.7 million; (iv) fair value loss on investment properties decreased to approximately HK$15.7 million; (v) fair value change in biological assets offsetting the loss on sale decreased to approximately HK$5.4 million; (vi) net fair value change in investments recognized in profit or loss increased to approximately HK$5.7 million; (vii) impairment loss allowance for receivables increased to approximately HK$3 million; (viii) financing costs decreased to approximately HK$6 million; and (ix) income tax credits decreased to approximately HK$2.3 million.