Yanchang Petroleum International Limited (stock code: 00346) issued a profit warning, projecting a net loss of around HK$780.00 million for the financial year ended 31 December 2025, shifting from a HK$56.00 million profit recorded in 2024.

Management attributes the expected downturn to several factors:

• Macroeconomic headwinds: Prolonged geopolitical conflicts, U.S.-China trade frictions and slower-than-expected economic growth in China curtailed global crude demand. Average WTI crude prices fell from roughly US$77 per barrel in 2024 to about US$66 per barrel in 2025.

• Revenue and margin pressure: Softer international oil prices and subdued domestic consumption of refined products reduced the Group’s sales and gross profit.

• Significant impairments: – Substantial impairment losses were recognised on Canadian oil-and-gas production assets. – Goodwill and other non-current assets tied to the refined-oil and by-products trading business in China were written down.

• Credit risks: Additional provisions for bad debts were booked within the refined-oil and by-products trading segment in China.

The unaudited figures are based on management accounts; final audited results are scheduled for release on or about 26 March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities.