YUNNAN ENERGY (01298) has announced that the group expects to record a net loss of between HK$500,000 and HK$1.5 million for the fiscal year ending December 31, 2025. This contrasts with a net profit of HK$500,000 reported for the previous fiscal year ended December 31, 2024. According to the announcement, the shift from a net profit to a net loss is primarily attributable to a decrease in both revenue and gross profit from the supply chain business. This decline was mainly caused by reduced demand for certain agricultural commodities, including Panax notoginseng, and a scaling back of business volume for certain other commodities, such as electrolytic copper, due to the group's tightened risk assessment measures. Additionally, the supply chain business experienced an increase in sales and distribution expenses, as well as a rise in income tax expenses.