JINMA ENERGY (06885) issued a profit warning, expecting the loss attributable to shareholders for the first half of the year to increase to approximately 1.089 billion yuan.

JINMA ENERGY (06885) announced that the group expects to report a loss attributable to shareholders of approximately RMB 1.089 billion in the first half of 2026, compared to a loss of approximately RMB 126 million in the same period of 2025. The announcement stated that the increase in losses is primarily due to the net loss resulting from the bankruptcy liquidation proceedings of its 70%-owned subsidiary, Xinyang Steel Jin Gang Energy Co., Ltd., which was ruled by the court to enter bankruptcy on June 29, 2026, leading to the company losing control over Xinyang Jin Gang. This includes the expected credit loss on receivables from Xinyang Jin Gang (approximately RMB 1.472 billion), the operational loss of Xinyang Jin Gang during the same period (approximately RMB 87 million), and the gains from the disposal of Xinyang Jin Gang (approximately RMB 361 million). Given the uncertainties surrounding the bankruptcy process of Xinyang Jin Gang, there may be further adjustments to the expected credit loss on the company's receivables.