Yanchang Petroleum International (00346) issued a profit warning. The medium-term loss of about HK$40.2 million is expected to increase by about 44% over the same period last year

According to Zhitong Finance App, Yanchang Petroleum International (00346) announced that the Group expects (i) to obtain operating income of approximately HK$7.024 billion for the six months ended June 30, 2026 (same period in 2025: approximately HK$99.5 billion), a decrease of about 30% compared with the same period last year, and (ii) a loss of approximately HK$40.2 million for the six months ended June 30, 2026 (same period 2025: approximately HK$27.8 million), an increase of about 44% over the same period last year.

The Board of Directors believes that the decrease in the Group's operating income and loss during the period under review was mainly due to the following reasons: (i) the decline in the Group's revenue was mainly due to a decrease of approximately HK$2,957 million in revenue from China's oil sales business, due to the decline in the scale of the oil trade business and the continuing narrowing of retail business price spreads, which decreased sales volume by about 32% compared to the same period last year; and (ii) the increase in the Group's losses was mainly due to exchange losses of approximately HK$10.7 million due to fluctuations in the exchange rate of the Canadian dollar against the Canadian dollar.