"HuaJin INTL" expects a full-year loss to expand to at least 1.18 billion RMB

HUAJIN INTL (02738.HK) issued a profit warning, expecting a loss of between RMB 1.18 billion and RMB 1.28 billion for the fiscal year 2025, compared to a loss of RMB 91.2 million in the previous year. The increase in losses is mainly due to a decline in revenue and profit; approximately RMB 390 million in commitment fees and deposits were forfeited by the group for failing to meet minimum procurement terms; instability in international trade has led to high raw material costs, increasing production costs; rising unit processing costs; and provisions for fixed asset impairment losses, credit losses on receivables, and year-end inventory write-downs