DIWANG IND H(01950) issues profit warning with an estimated annual comprehensive loss of approximately 1.8 million yuan, turning from profit to loss year-on-year.

DIWANG IND H (01950) announced that the Group is expected to report a comprehensive loss of approximately RMB 1.8 million for the year ending December 31, 2025, compared to a comprehensive profit attributable to owners of the Company of approximately RMB 30 million for the year ending December 31, 2024. The decrease in unaudited comprehensive profit for the current year is mainly due to (i) an increase in impairment losses under the expected credit loss model (net of reversal) from approximately RMB 7 million in 2024 to approximately RMB 30.8 million in 2025, primarily as a result of increased competition and deteriorating operating environment in the industrial chemical industry leading to higher accounts receivable from customers; and (ii) an increase in sales and distribution expenses of approximately RMB 35.8 million, mainly due to an increase in advertising expenses of RMB 27.8 million and depreciation of RMB 5.3 million. These effects offset the positive impact of increased revenue, resulting in a gross profit increase of approximately RMB 27.9 million.