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SICC Co.,Ltd. Class H ( (HK:2631) ) has shared an update.
SICC Co., Ltd. announced that, following impairment tests conducted under Chinese accounting standards to fairly present its financial position as of 31 December 2025, it expects to record total asset and credit impairment provisions of approximately RMB24.81 million in the fourth quarter of 2025. The charges mainly comprise inventory depreciation, contract performance cost impairments, fixed asset impairments, and revised expected credit losses on receivables, signaling a conservative stance on asset quality that may weigh on near-term profits but is intended to provide a more realistic balance sheet for stakeholders.
By recognizing these impairment losses after consultation with auditors, the company indicates that certain inventories’ net realizable values have fallen below carrying costs and that some receivables require higher loss reserves under the expected credit loss model. While the one-off provision will negatively affect quarterly earnings, it may help SICC clean up legacy risks, align its reporting more closely with underlying asset values, and potentially improve long-term transparency and risk control in the eyes of regulators and investors.
The most recent analyst rating on (HK:2631) stock is a Buy with a HK$79.00 price target. To see the full list of analyst forecasts on SICC Co.,Ltd. Class H stock, see the HK:2631 Stock Forecast page.
More about SICC Co.,Ltd. Class H
SICC Co., Ltd. is a joint stock company incorporated in the People’s Republic of China and listed in Hong Kong under stock code 2631. Operating in the industrial materials and manufacturing sector, it reports under PRC Accounting Standards for Business Enterprises and focuses on maintaining prudent financial management and transparent disclosure for investors.
Average Trading Volume: 1,778,178
Technical Sentiment Signal: Strong Sell
Current Market Cap: HK$38.11B
See more data about 2631 stock on TipRanks’ Stock Analysis page.