AOWEI HOLDING (01370) expects a mid-term loss attributable to shareholders of no more than approximately 20 million yuan.

AOWEI HOLDING (01370) announced that it expects to incur a loss attributable to shareholders of the company of no more than approximately RMB 20 million for the six months ending June 30, 2026, compared to a loss of RMB 75.6 million for the same period last year, representing an expected year-on-year decrease in loss of approximately 73.5%. The narrowing of the loss during the reporting period is mainly attributed to (1) an increase in iron concentrate sales prices during the reporting period, continuous strengthening of cost control by the group, and a reduction in expenses related to raw material procurement, transportation, and other areas, leading to an increase in gross margin; (2) the sand and gravel aggregate business of Laiyuan County Jiheng Mining Co., Ltd. is gradually recovering, with increased production and sales over the past six months; (3) the group expects the impairment losses under the credit loss model (net amount after reversals) to shift from a significant provision in the same period last year to a reversal of impairment for this period.