Xin Lang Cai Jing·2026-01-23 10:14Core Viewpoint - The company, Construction Machinery, expects a net profit loss of approximately 2.072 billion yuan for 2025, compared to a loss of 988 million yuan in the same period last year [1][6]. Group 1: Performance and Financial Outlook - The anticipated loss for 2025 is attributed to insufficient downstream demand in the domestic tower crane rental market, resulting from a decrease in new construction area and low project commencement rates, which have kept equipment utilization and rental prices at low levels [2][7]. - The company has conducted asset impairment tests, revealing significant impairments in its construction machinery rental business assets, including goodwill and properties acquired through debt settlement, contributing to the expected large loss [2][7]. Group 2: Business Operations - Construction Machinery's main business segments include engineering machinery rental and manufacturing, with key products such as asphalt concrete pavers, rollers, milling machines, stabilizing soil mixers, asphalt mixing plants, trackless rubber-tired vehicles for coal transportation, rotary drilling rigs for municipal construction, and tower cranes for building projects [2][7]. Group 3: Capital Raising and Market Response - The company announced the termination of its plan to raise funds through a private placement to its controlling shareholder, Shaanxi Coal and Chemical Industry Group, which was initially intended to raise up to 1.265 billion yuan for working capital and debt repayment [3][8]. - The decision to terminate the stock issuance was based on a comprehensive assessment of the macroeconomic environment, the company's actual situation, and changes in the capital market, ensuring that the termination would not affect the normal development of the company's existing business or harm the interests of shareholders, especially minority shareholders [3][8]. Group 4: Market Performance - As of January 23, the company's stock closed at 3.81 yuan per share, with a total market capitalization of 4.8 billion yuan [4][9].