Yuanda China Holdings warns of significant net loss

Yuanda China Holdings (HKEX: 2789) issued a profit warning today, anticipating a net loss ranging from RMB330 million to RMB370 million for the year ended December 31, 2024. This represents a significant decline compared to the RMB25.3 million net profit reported in 2023. The company attributed the expected loss to prudent project undertakings amid weak global macroeconomic conditions, unfavorable market environments, exchange losses from RMB fluctuations, and tax effects from reversing deferred tax assets. Despite the expected loss, Yuanda China Holdings expressed optimism about its long-term prospects, noting that new projects undertaken in 2024 exceeded RMB3.0 billion and are expected to grow further in early 2025. The company stated it will continue to monitor market changes and improve business resilience.