CN ANCHU ENERGY suffers RMB326.79 million annual loss as revenue collapses 81% in 2025

CN ANCHU ENERGY (China Anchu Energy Storage Group) reported a sharp deterioration in operating scale for the year ended 31 December 2025. Group revenue fell 81.04% year on year to RMB88.53 million, dragged down by a 96.4% plunge in industrial product sales to RMB13.24 million after shipping disruptions in the Red Sea region curtailed deliveries to Saudi Arabia.

Gross profit contracted to RMB20.07 million (2024: RMB105.69 million), while the gross margin stabilised at 22.7% (2024: 22.6%). Heavy provisions for expected credit losses (RMB202.74 million) and asset impairments (RMB35.02 million) drove an operating loss of RMB312.64 million. After finance costs of RMB25.24 million, the Group posted a net loss of RMB326.79 million, marginally narrower than the RMB361.13 million loss a year earlier. Loss attributable to shareholders totalled RMB294.73 million, equal to a basic and diluted loss per share of RMB 9.68 cents (2024: RMB 12.52 cents).

Segment performance underscored the revenue slide:

• Industrial Products – Revenue RMB13.24 million (-96.4%); segment loss RMB185.10 million, hampered by receivables provisions.

• Menswear Apparel – Revenue RMB70.22 million (-24.6%); segment loss narrowed to RMB55.57 million on cost controls despite weaker pricing.

• Energy Storage Battery – Revenue RMB5.08 million (-42.0%); segment loss widened slightly to RMB67.62 million, including a RMB8.15 million fair-value loss on investor repurchase rights.

The balance sheet showed net current liabilities of RMB328.18 million (2024: RMB254.16 million). Cash and cash equivalents rose to RMB157.07 million from RMB45.98 million, assisted by equity financing, while total interest-bearing debt stood at RMB497.37 million. Net assets declined 26.2% to RMB291.27 million, pushing the gearing ratio to 170.8% (2024: 130.9%).

Management prepared the accounts on a going-concern basis, citing RMB94.43 million in undrawn bank facilities, shareholder loan support and significant asset pledges against secured borrowings. Capital commitments amounted to RMB177.90 million, mainly for production expansion in the energy storage battery segment.

Financing activities remained active. In January 2025 the company issued 59.57 million new shares, raising approximately RMB27.5 million for working capital. After year-end, 524.43 million new shares were placed in January 2026, generating roughly RMB260.30 million earmarked for capacity expansion, debt repayment and general operations.

Operationally, the industrial products unit resumed limited activity late in 2025 following earlier suspension, while the menswear business continued to adjust product mix amid subdued consumer demand. The energy storage battery facility in Nanjing stayed in trial production; phase-two automation plans and equipment upgrades are ongoing.

Post-year end, CN ANCHU ENERGY agreed to acquire a full stake in Wuzhong Ruichu Technology for RMB64.00 million, aiming to add an electro-chemical energy storage project in Ningxia to its portfolio.

No dividend was declared for 2025.