YANCHANG PETRO (00346) issued a profit warning, expecting a mid-term loss of approximately HKD 40.2 million, an increase of about 44% compared to the same period last year.

YANCHANG PETRO (00346) announced that the Group expects (i) to achieve operating revenue of approximately HKD 7.024 billion for the six months ending June 30, 2026 (same period in 2025: approximately HKD 9.995 billion), a decrease of about 30% compared to the same period last year, and (ii) to incur a loss of approximately HKD 40.2 million for the six months ending June 30, 2026 (same period in 2025: approximately HKD 27.8 million), an increase of about 44% compared to the same period last year. The Board believes that the decrease in operating revenue and the increase in loss during the review period are mainly due to the following reasons: (i) The decrease in operating revenue is mainly attributed to a reduction of approximately HKD 29.57 billion in revenue from China's oil product sales business, due to a decline in the scale of oil trading operations and a continued narrowing of retail price differentials, with sales volume decreasing by about 32% compared to the same period last year; and (ii) The increase in the Group's loss is primarily due to an exchange loss of approximately HKD 10.7 million arising from fluctuations in the USD/CAD exchange rate on fixed-rate loans denominated in US dollars related to the Canadian oil and gas production business.