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Huili Resources Warns of Sharp 2025 Profit Drop on Weak Coal Prices and One-Off Effects

Story Highlights
  • Huili Resources expects 2025 net profit to plunge to RMB10–20 million from RMB160 million.
  • The profit slide is driven by lower coal prices, absent one-off gains, higher credit losses and FX loss.
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Huili Resources Warns of Sharp 2025 Profit Drop on Weak Coal Prices and One-Off Effects

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Huili Resources (Group) Limited ( (HK:1303) ) just unveiled an update.

Huili Resources (Group) Limited has issued a profit warning, telling investors it expects net profit from continuing operations for 2025 to fall sharply to about RMB10 million to RMB20 million, down from roughly RMB160 million a year earlier. The company attributes the decline mainly to lower coal prices hitting gross profit, the absence of last year’s one-off gains from an acquisition and an asset disposal, higher expected credit losses, and a swing from foreign exchange gain to loss.

The group reported that gross profit is projected to drop from around RMB223 million to about RMB132 million as coal prices weakened, even as it adjusted its customer mix to protect margins. Investors are cautioned that the figures are based on unaudited management accounts and may change when full annual results are released by the end of March 2026, underscoring heightened earnings volatility and risk for shareholders.

The most recent analyst rating on (HK:1303) stock is a Hold with a HK$0.23 price target. To see the full list of analyst forecasts on Huili Resources (Group) Limited stock, see the HK:1303 Stock Forecast page.

More about Huili Resources (Group) Limited

Huili Resources (Group) Limited is a Hong Kong-listed resources company engaged in coal-related operations and associated logistics and mineral resource activities. The group focuses on coal production and sales, as well as managing related assets and investments in the broader resources and energy supply chain.

Average Trading Volume: 233,747

Technical Sentiment Signal: Sell

Current Market Cap: HK$513.2M

Learn more about 1303 stock on TipRanks’ Stock Analysis page.

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