Hengxin Technology Ltd. (HXTL) has issued a profit warning, indicating an unaudited net loss of approximately RMB41.00–43.00 million for the year ended 31 December 2025. The company had reported an audited net profit of RMB73.30 million for the prior fiscal year, marking a sharp year-on-year reversal.
Management attributes the anticipated loss to four main factors:
1. A decline in revenue during the reporting period. 2. Higher impairment losses on trade and other receivables. 3. Increased interest expense. 4. A rise in income tax expense.
The figures are based on the group’s preliminary, unaudited management accounts and may change when the final audited results are released, which is expected on or around 31 March 2026. HXTL advises shareholders and potential investors to exercise caution when trading its securities until the final results are disclosed.
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