Ko Yo Chemical (Group) Limited (KO YO GROUP, 00827.HK) announced that, based on unaudited management accounts for the financial year ended 31 December 2025, the Group anticipates a net loss attributable to equity shareholders of approximately RMB709.00 million. This represents an additional loss of roughly RMB204.00 million versus the RMB505.00 million net loss recorded in 2024.
Management attributes the deterioration primarily to two factors:
1. Gross margin reversal: Average selling prices of chemical products and fertilisers fell year-on-year, pushing the Group’s average gross profit margin to –3.0 % in 2025 from 1.3 % in 2024. 2. Asset impairment: A fixed-asset impairment charge of about RMB245.00 million weighed further on profitability.
The figures are derived from preliminary internal accounts and have neither been audited nor reviewed; final results may differ after completion of the annual audit. The full audited financial statements will be released in the forthcoming annual report.
The Board advises shareholders and prospective investors to exercise caution when dealing in the Company’s securities.