CIMC (02039) Issues Profit Warning, Expects Net Profit Attributable to Shareholders of RMB1.45 Billion to RMB2.14 Billion

Stock News
01/30

China International Marine Containers (Group) Co., Ltd. (CIMC) has announced that it expects the consolidated net profit attributable to shareholders and other equity holders for the twelve months ending December 31, 2025, to be in the range of RMB1.45 billion to RMB2.14 billion. This represents a significant decrease compared to the same period last year, which recorded a profit of RMB29.72 billion. Basic earnings per share are projected to be between RMB0.011 and RMB0.024.

The anticipated substantial decline in the Group's consolidated performance for the twelve months ending December 31, 2025, is primarily attributed to a considerable year-on-year downturn in the performance of its container manufacturing business in 2025. This was mainly due to the historical peak in the production and sales of standard dry containers in the container manufacturing industry during 2024. Against this high base, compounded by international trade frictions and a slowdown in the growth rate of global merchandise trade volume in 2025, global container demand experienced a normal decline compared to the previous year.

The Group's associate company, Shenzhen CIMC Yinxing Development Group Co., Ltd., adjusted its pricing strategy to sell the entire East Tower project of the Qianhai CIMC International Business Center in a bulk transaction to accelerate cash collection and ensure liquidity. As the selling price of this project differed from its book cost, the Group recognized an indirect loss from this transaction under the investment income account. This is expected to indirectly reduce the Group's net profit attributable to shareholders by approximately RMB1.08 billion.

Amid various uncertain factors, the foreign exchange market experienced sustained and significant volatility in 2025. According to the Company's preliminary statistics, the combined loss from exchange differences on foreign currency exposures and foreign exchange hedging activities for 2025 amounted to approximately RMB1.243 billion. This included an exchange loss of about RMB1.099 billion from foreign currency exposures, primarily generated by USD/RMB asset exposures. The hedging ratio for this exposure was relatively low for the year after balancing cost and risk, as the cost of hedging was high. Losses from foreign exchange hedging activities were approximately RMB144 million, mainly stemming from hedging operations conducted for EUR/USD asset exposures. Concurrently, the EUR/USD exposure generated exchange gains. It is estimated that, after management through hedging activities, the combined effect of exchange differences and foreign exchange hedging for the EUR/USD exposure resulted in a net gain.

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