Aowei Holding reports increased loss as revenue declines in H1 2025

Aowei Holding Limited reported a loss attributable to equity shareholders of RMB75.6 million for the six months ended June 30, 2025, up from RMB50.6 million in the corresponding period last year. Revenue for the period decreased by 15.6% to RMB273.1 million, down from RMB323.7 million in H1 2024. This was largely due to lower selling prices for iron ore concentrates and sand and gravel materials, despite increased sales volume in the latter. Gross profit plummeted by 89.7% to RMB4.8 million, resulting in a gross profit margin of 1.8%.

The iron ore business recorded revenue of RMB239.0 million, a 22.1% decrease year-on-year. The average selling price of iron ore concentrates fell by 16.1% to RMB718.4 per ton, and output declined by 3.0% to 327.5 Kt. Conversely, the sand and gravel materials business experienced significant growth, with output up 122.6% to 1,037.6 Kt and sales volume increasing by 173.4% to 1,258.57 Kt, mainly due to normalized operations.

Total bank borrowings amounted to RMB870.5 million as of June 30, 2025, with a gearing ratio of 48.6%. The company's current liabilities exceeded current assets by RMB556.437 million, and bank borrowings due within one year totaled RMB773.5 million, raising material uncertainties about its going concern ability. Management is actively negotiating with banks for loan renewals, and directors have pledged financial support to address these challenges.