Vantage Green Technology (01845) Issues Profit Warning; Expects Loss Attributable to Shareholders of Approximately RMB 63 Million to 65 Million for FY2025

Victoria Harbour Environmental Technology (01845) announced that, compared to a net loss of RMB 55.3 million in 2024, the company expects to record a net loss of approximately RMB 76 million to RMB 78 million for the year ending December 31, 2025. Compared to the attributable loss to shareholders of RMB 48.6 million in 2024, the company expects the attributable loss to shareholders in 2025 to be approximately RMB 63 million to RMB 65 million.

They expect the loss in 2025 mainly due to (including): (1) an impairment of approximately RMB 17 million to RMB 18 million for the Jiangmen oxygen-free cracking project, based on independent third-party appraiser’s assessment, mainly due to the long construction and R&D cycles of the project, ongoing technical upgrades of some equipment, and concerns about the project’s commercial prospects. After careful consideration, the group’s management decided to have an independent third-party appraiser evaluate the project based on the latest project status and the management’s proposed future operational plan. As a result, the 2025 group financial statements will recognize an impairment for this project; (2) an impairment of approximately RMB 14 million to RMB 15 million for goodwill arising from the acquisition of Xinjiang Tiansheng, based on independent third-party appraiser’s assessment, mainly due to concerns about the project’s commercial prospects. The appraiser evaluated the project based on the latest information and the management’s proposed future plan. Consequently, the 2025 group financial statements will recognize an impairment of this goodwill; (3) a reversal of deferred tax assets previously recognized in prior years, amounting to approximately RMB 9 million to RMB 10 million.