Zhonghua Gas Holdings reports significant increase in net loss after tax for 2024 second interim period.

Zhonghua Gas Holdings Ltd reported a 1,144.3% increase in net loss after tax for the twelve months due to a decrease in reversal of allowance of impairment on trade receivables, others. The company expects a net loss after tax of RMB50.1 million for the 2024 second interim.

Zhonghua Gas Holdings Limited (ZGHL), an investment holding company specializing in new energy services, reported a substantial increase in net loss after tax for the twelve months ending in December 2023 [1]. The company attributed the increase to a decrease in reversal of allowance of impairment on trade receivables and other items.

Despite the significant net loss, ZGHL expects to report a net loss after tax of RMB50.1 million for the 2024 second interim [1]. This expectation indicates that the company anticipates a reduction in losses moving forward.

ZGHL's primary business activities include technological development, construction related and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas (LNG), and trading of new energy related industrial products [1]. Additionally, the company is engaged in the property investment business.

The decrease in reversal of allowance of impairment on trade receivables and other items suggests that the company experienced difficulties in collecting outstanding debts or that the value of these debts declined significantly during the reporting period. This could be due to various factors, such as economic downturns, changes in customer creditworthiness, or operational inefficiencies.

Despite the challenges, ZGHL remains optimistic about its future prospects. The company's expectation of a reduction in net losses for the 2024 second interim suggests that it is taking steps to address the issues that led to the significant net loss in the previous year.

In conclusion, Zhonghua Gas Holdings Limited reported a significant increase in net loss after tax for the twelve months ending in December 2023, primarily due to a decrease in reversal of allowance of impairment on trade receivables and other items. Despite this challenge, the company expects to report a reduction in net losses for the 2024 second interim.

[1] MarketScreener. (2023, February 15). Zhonghua Gas Sees Increase In Net Loss After Tax By 1,144.3% For Twelve Months. Retrieved from https://www.marketscreener.com/quote/stock/ZHONGHUA-GAS-HOLDINGS-LIM-9691660/news/Zhonghua-Gas-Sees-Increase-In-Net-Loss-After-Tax-By-1-144-3-For-Twelve-Months-49032792/