Guangnan (Group) (01203) issued a profit warning. The total loss due to shareholders is expected to be around HK$160 million to HK$165 million in the first three quarters

According to Zhitong Finance App, Guangnan (Group) (01203) announced that it expects an unaudited comprehensive loss of about HK$160 million to HK$165 million for the nine months ending September 30, 2026, and an unaudited comprehensive profit of HK$109 million attributable to the equity holders of the Company for the nine months ending September 30, 2025.

The main factors affecting the aforementioned unaudited consolidated results of the Group for the nine months ended September 30, 2026 are as follows:

(i) Affected by the drop in pig prices in the first three quarters of 2026, the performance of the associated companies operating live pig breeding and sales continued to lose money. The Group's share of the associated company's losses increased sharply year over year, changing from profit to loss; in addition, the live pig supply business was also affected by falling pig prices, and profits declined year on year;

(ii) Competition in the tinplate industry is fierce, and the sales volume and price of tinplate products declined year on year. Coupled with increased provision for inventory deduction, the profit of the tinplate business decreased year on year; and

(iii) In the food biology business, the Group stopped its domestic wholesale business. For overdue receivables from this business, credit risk was assessed based on actual conditions, market conditions, debtor payment records and solvency conditions, and a credit impairment loss of about HK$51 million was calculated according to the expected credit loss model, which led to a year-on-year decrease in the profit of the food biology business. However, the Group actively communicates with customers to collect accounts receivable, continues to closely monitor the settlement of such payments, and has taken legal action against some debtors to protect the interests of the Group.