WG ENV TECH (01845) issues a profit warning, expecting a net loss attributable to shareholders of approximately 63 to 65 million yuan for the year 2025.

WG ENV TECH (01845) announced that compared to the net loss of approximately 55.3 million yuan for the fiscal year ending in 2024, it is expected to incur a net loss of approximately 76 to 78 million yuan for the fiscal year ending on December 31, 2025. Compared to the attributable net loss of 48.6 million yuan to the owners of the company for the fiscal year of 2024, it is expected that the attributable net loss to the owners of the company will be approximately 63 to 65 million yuan for the fiscal year 2025. They expect the loss for the fiscal year 2025 to mainly be due to: (1) An impairment provision of approximately 17 to 18 million yuan on the Jiangmen anaerobic cracking project based on the assessment results of an independent third-party appraiser, mainly due to the long construction and R&D periods of the project, continuous technical upgrades of some equipment, and concerns about the project's commercial prospects. After careful consideration by the group's management, the project was valued by the independent third-party appraiser based on the latest project status and the group's proposed future operating plans. Thus, an impairment provision was made on the project in the 2025 group financial statements; (2) An impairment provision of approximately 14 to 15 million yuan on the goodwill generated from the acquisition of Xinjiang Tiansheng by the group based on the assessment results of an independent third-party appraiser, due to concerns about the project's commercial prospects. The goodwill was valued by the independent third-party appraiser based on the latest project status and the group's proposed future operating plans. Thus, an impairment provision was made on the goodwill in the 2025 group financial statements; (3) Reversal of the deferred tax assets provided in previous fiscal years, with a reversal amount of approximately 9 to 10 million yuan.