SINO GAS HLDGS (01759) has announced that the group expects to record a net loss in the range of RMB 33 million to RMB 36 million for the year ending December 31, 2025. This projected loss includes approximately RMB 17 million in non-recurring gains and losses. Compared to the net loss of about RMB 17.8 million for the year ended December 31, 2024, this represents an increase in losses of approximately RMB 15.2 million to RMB 18.2 million.

The board of directors attributes the anticipated increase in the net loss for the current year primarily to the following factors: a decrease in the group's higher-margin vehicle-compressed natural gas business in Henan province, due to the replacement of some compressed natural gas vehicles with electric vehicles in China, which led to a decline in the group's profit. Additionally, the increase in non-recurring gains and losses is mainly due to the group recognizing an impairment provision of approximately RMB 10.7 million for property, plant, and equipment, and writing off approximately RMB 4.4 million of such assets during the year. These impairments and write-offs were primarily a result of the decreased utility and subsequent write-off of related assets following the replacement of compressed natural gas vehicles with electric vehicles, further contributing to the decline in the group's profit.

Despite these circumstances, the group's liquefied petroleum gas business achieved growth in both sales volume and gross profit during the year, providing some cushion to the overall performance. The board of directors will continue to closely monitor the group's strategic positioning and operational status, and will consider adjusting business strategies in a timely manner in response to actual market conditions.