The ZHONGHUA GAS (08246) group has announced its financial forecast, indicating an expected net loss after tax for the year ending March 31, 2026. The projected loss is approximately RMB 26.2 million, which represents a significant 56.4% reduction compared to the net loss of about RMB 60 million recorded for the 15-month period ending March 31, 2025.

This anticipated decrease in net loss is primarily attributed to several key factors. Firstly, the current fiscal year did not incur any equity-settled share-based payment expenses, whereas the previous period included an expense of roughly RMB 26.9 million. Secondly, financial costs have transformed into financial income, shifting from an expense of about RMB 9.9 million in the prior period to an income of approximately RMB 1.7 million for this year. Additionally, administrative expenses have decreased due to the recognition of results for a standard 12-month period in the current year, as opposed to the 15-month period recognized in the prior comparative period.

However, the positive impact of these reductions was partially offset by a change in the treatment of trade receivables and contract assets. The reversal of impairment provisions for these items decreased substantially, from around RMB 4.2 million in the previous period to an impairment provision of about RMB 15.3 million for the current year.