Yunnan Energy (01298) issued a profit warning, expecting a net loss of HK$500,000 to HK$1.5 million for the year, with a year-on-year switch from profit to loss.

Yunnan Energy (01298) announced that it expects a net loss of HK$500,000 to HK$1.5 million for the financial year ending on December 31, 2025 (current year), compared to a net profit of HK$500,000 for the financial year ending on December 31, 2024 (previous year). The announcement stated that the Group incurred a net loss in the current year, compared to a net profit in the previous year, primarily due to a decrease in revenue and gross profit from the supply chain business, mainly attributed to reduced demand for several agricultural commodities (including Sanqi) and tightened risk assessment measures leading to a reduction in the business scale of some commodities (including electrolytic copper). Additionally, there was an increase in sales and distribution expenses for the supply chain business, as well as an increase in income tax for the supply chain business.