Da Cheng Corn Group(03889) issues profit warning, expects a pre-tax net loss of approximately HKD 120 million to HKD 140 million in 2025, turning from profit to loss year-on-year

Dacheng Corn Group (03889) announced that the group expects to achieve total revenue of approximately HKD 491 million in 2025, compared to approximately HKD 623.5 million in 2024; and expects a pre-tax net loss of about HKD 120 million to HKD 140 million in 2025, compared to a pre-tax net profit of about HKD 57.2 million in 2024.

The announcement states that the performance change is mainly due to the following factors: The continuous oversupply and intense market competition for sweetener products in Mainland China have led to sustained pressure on market prices. The group has made strategic adjustments to the production volume of sweetener products to achieve optimal operating rates, aiming to balance the group’s market share and profitability; and no recognition has been made within this year for the following items: (i) A one-time gain of approximately HKD 167.6 million from the debt restructuring agreement completed in January 2024 with (a) China Cinda Asset Management Co., Ltd. Jilin Branch (as creditor), (b) Jinzhou Yuancheng Biochemical Technology Co., Ltd. (as debtor), and © Shanghai Haosheng Food Development Co., Ltd. (as guarantor) (the latter two are both indirect wholly-owned subsidiaries of the company); and (ii) A one-time gain of approximately HKD 42.2 million from the sale of the company’s former wholly-owned subsidiary Dacheng Retail Investment Limited and its subsidiaries in April 2024.