Core Viewpoint - The company, Sanyuan Foods (三元股份), is expected to report significant losses in 2025 due to impairment provisions related to its investment in the French company HCo, leading to a projected net profit loss of between 178 million to 356 million CNY [1]. Financial Performance - For the fiscal year 2025, the company anticipates a net profit attributable to shareholders of the parent company to be between -376 million to -198 million CNY, excluding non-recurring gains and losses [3]. - After adjusting for the impairment, the expected net profit attributable to shareholders is projected to be between 260 million to 318 million CNY, with a net profit excluding non-recurring items estimated at 240 million to 298 million CNY [3]. - In the same period last year, the company reported a net profit of 54.81 million CNY and a net profit excluding non-recurring items of 29.82 million CNY [3]. - The company expects to achieve an operating revenue of approximately 6.35 billion CNY in 2025, reflecting a year-on-year decline [3]. Investment and Impairment Details - The impairment provision is related to the company's 49% stake in HCo, which acquired StHubert in 2018. The impairment is expected to reduce the book value of long-term equity investments by 496 million to 616 million CNY [4]. - The decline in market demand and increased external competition are cited as factors contributing to the impairment [4]. Recent Performance Metrics - For the first three quarters of 2025, the company reported revenues of 4.871 billion CNY, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders increased by 128.2% to 236 million CNY [4]. - The net profit excluding non-recurring items for the same period rose by 214.5% to 223 million CNY, with a net cash flow from operations of 329 million CNY, up 410.8% [4]. - In Q3 2025, the company achieved revenues of 1.54 billion CNY, a slight decline of 0.3% year-on-year, but turned a profit with a net profit of 53.14 million CNY compared to a loss of 24.77 million CNY in the same quarter last year [5]. Asset and Market Position - As of the end of Q3 2025, the company's total assets amounted to 9.324 billion CNY, a 5.6% increase from the end of the previous year, while the net assets attributable to shareholders grew by 6.0% to 5.238 billion CNY [6]. - As of January 16, 2026, the company's stock price was 5.24 CNY per share, with a total market capitalization of 7.821 billion CNY [7].