KO YO GROUP (00827) issued a profit warning, expecting a net loss attributable to shareholders of approximately RMB 709 million for the fiscal year 2025.

KO YO GROUP (00827) announced that it is expected to incur a net loss attributable to equity holders of the company of approximately RMB 709 million for the year ending December 31, 2025, compared to a net loss of approximately RMB 505 million for the year ending December 31, 2024, an increase in loss of approximately RMB 204 million. The main reason for the increase in net loss in 2025 is due to a decrease in gross profit margin of the group's products and impairment losses on fixed assets amounting to approximately RMB 245 million. The average selling prices of chemical products and fertilizers in 2025 have decreased compared to the previous year, resulting in a decrease in the gross profit margin of the group's products. The average gross profit margin of the group's products for 2025 is estimated to be around -3.0%, while the average gross profit margin for the previous year was approximately 1.3%.