Yuhzhi Farm (00875.HK) issued a profit warning, expecting a net profit of no more than 6 million yuan in the first half of the year, a decrease of about 30.1 million yuan compared to the same period last year, a year-on-year decline of 80.1%.

The company stated that the decrease in net profit during the period is mainly due to the economic recession in China leading to a decrease in revenue; the consulting fees for the design services of the Group's food trading division increased, resulting in an increase in administrative and other expenses; there was confirmation of impairment losses on trading receivables, while in the same period last year, there was a reversal of impairment losses on trading receivables, which was due to the recovery of impaired trading receivables in the same period last year.