Ko Yo Chemical flags deeper 2025 loss on margin squeeze and asset impairment

An announcement from Ko Yo Chemical (Group) Limited ( (HK:0827) ) is now available.

Ko Yo Chemical (Group) Limited has warned that it expects to post a net loss attributable to equity shareholders of about RMB709 million for 2025, widening its loss by roughly RMB204 million from the previous year. Management attributed the deterioration to a sharp decline in gross profit margin driven by lower average selling prices for its chemical and fertiliser products, as well as an impairment loss on fixed assets of around RMB245 million.

The group’s average gross profit margin is projected to turn negative at about -3.0% for 2025, compared with a positive 1.3% a year earlier, underscoring mounting margin pressure in its core businesses. The deeper loss and asset write-downs signal ongoing operational and market challenges that could weigh on investor sentiment, and the company has urged shareholders and potential investors to exercise caution while it finalises its audited annual results.

The most recent analyst rating on (HK:0827) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Ko Yo Chemical (Group) Limited stock, see the HK:0827 Stock Forecast page.

More about Ko Yo Chemical (Group) Limited

Ko Yo Chemical (Group) Limited is a Hong Kong-listed chemical producer incorporated in the Cayman Islands and focused on chemical products and chemical fertilisers. The group operates through various subsidiaries and serves markets exposed to commodity price fluctuations, making its performance sensitive to changes in selling prices and production asset values.

Average Trading Volume: 12,451,454

Technical Sentiment Signal: Hold

Current Market Cap: HK$365.5M

For detailed information about 0827 stock, go to TipRanks’ Stock Analysis page.