ZT HN Group (02433) has announced a profit alert, indicating that the group expects to record a net loss of approximately RMB 70 million to RMB 78 million for the fiscal year ending December 31, 2025. This compares to a net loss of approximately RMB 26.4 million for the previous fiscal year ended December 31, 2024. The board of directors attributes the significant increase in net loss compared to the prior year primarily to two factors. Firstly, revenue decreased from approximately RMB 930.8 million in the previous year to about RMB 586.3 million in the current year, largely due to a general economic slowdown and a reduction in construction projects. Secondly, the net impairment of financial and contract assets rose substantially from approximately RMB 37.6 million in the prior year to about RMB 74 million in the current year. This increase is a result of extended customer settlement periods and the corresponding provision for expected credit losses.
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