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China Harmony Auto Holding Limited ( (HK:3836) ) has issued an announcement.
China Harmony Auto Holding Limited has warned that its loss attributable to shareholders for 2025 could widen to as much as RMB635 million, more than double the previous year’s deficit of RMB291.1 million. The deterioration is largely linked to non-recurring and non-cash items, including write-offs and impairment charges on property, plant and equipment, fair value losses on convertible notes, and expected credit losses tied to a defaulting aftersales partner.
The group booked a one-off write-off of about RMB176.9 million related to store adjustments aimed at improving sales efficiency and profitability, alongside impairment provisions exceeding RMB188 million for underperforming assets. It also expects around RMB57.2 million in credit losses from an independent aftersales company’s failure to repay debts, and roughly RMB42.1 million in fair value losses on convertible notes, adding pressure to the bottom line despite operational restructuring.
Despite the projected net loss, China Harmony Auto reported that revenue from the sale of automobiles and other businesses rose more than 30% in 2025, mainly driven by a strategic expansion of its international sales network. This contrast between strong top-line growth and deepening losses underscores a transitional period in which the company is investing in network optimization and broader market coverage, but shareholders are cautioned that earnings remain under strain in the near term.
The most recent analyst rating on (HK:3836) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Harmony Auto Holding Limited stock, see the HK:3836 Stock Forecast page.
More about China Harmony Auto Holding Limited
China Harmony Auto Holding Limited is a Hong Kong-listed automotive dealership group focused on the sale of automobiles and related services. The company has been expanding its international sales network to broaden its market reach and drive higher vehicle sales volumes, positioning itself to capture growing demand in overseas markets.
Average Trading Volume: 1,905,007
Technical Sentiment Signal: Buy
Current Market Cap: HK$1.76B
Learn more about 3836 stock on TipRanks’ Stock Analysis page.