China Env Res (01130.HK) issued a profit warning, expecting the audited comprehensive loss for the year ending June this year to increase by not less than 100% compared to the loss of approximately 35.2 million yuan in the same period last year.

The board of directors believes that the widening loss is mainly due to changes in revenue and products during the period, resulting in gross profit increasing to approximately 17.7 million yuan; other income decreasing to approximately 1.9 million yuan; administrative and operating expenses decreasing to approximately 40.9 million yuan; fair value loss on investment properties increasing to approximately 17.3 million yuan; fair value changes on biological assets offset by increased loss on sale costs increasing to approximately 38.6 million yuan; fair value changes on investments accounted for at fair value increasing to approximately 1.6 million yuan; impairment losses on accounts receivable provisions decreasing to approximately 0.3 million yuan; financing costs increasing to approximately 6.8 million yuan; and tax credits increasing to approximately 10.6 million yuan.