YANCHANG PETRO (00346) has announced that the group expects to record a loss of approximately HK$780 million for the fiscal year ending December 31, 2025. This contrasts with a profit of around HK$56 million achieved in the previous year. The global economic recovery in 2025 has lacked momentum, overshadowed by uncertainties stemming from the protracted Russia-Ukraine war, escalating Middle East tensions, and tariff conflicts initiated by the United States. Specifically, China's economic growth has fallen short of expectations, with persistently weak industrial output and refined oil product consumption further suppressing crude oil demand. The price of WTI crude oil exhibited an overall downward trend, declining from an average of about $77 per barrel in 2024 to an average of approximately $66 per barrel in 2025. The group's performance was adversely affected by the drop in international oil prices and weak consumption of refined oil products in China. The board of directors attributes the shift from profit to loss during the reviewed fiscal year primarily to decreased group revenue and gross profit due to the sluggish global economic recovery; significant impairment losses on oil and gas assets related to the petroleum and natural gas production operations in Canada; impairment losses on goodwill and other non-current assets associated with the refined oil and by-products trading business in China; and provisions for bad debts related to the refined oil and by-products trading business in China.