Net profit attributable to parent company shifts from expected profit to expected loss, Mingde Biology's 2025 performance forecast "changes face"

AI · Mingde Biological’s Performance Reversal: How Does the Prudence Principle Affect Financial Assessment?

Beijing Business Daily (Reporter Ding Ning) March 22 — Mingde Biological (002932) released a revised forecast for 2025, showing the company expects a net profit attributable to shareholders of -15 million to -25 million yuan, compared to the original estimate of 12 million to 18 million yuan.

Mingde Biological stated that when disclosing the 2025 performance forecast, the annual audit work had not yet been fully carried out, and relevant financial data and information were still in the preliminary整理 stage. As the annual audit progressed and further data was collected and verified, the company maintained full communication with the auditors and carefully assessed the situation. Based on the prudence principle, the company re-evaluated its 2025 performance.

Specifically, Mingde Biological conducted a comprehensive review and cautious analysis of its operating income. Based on the prudence principle, the company did not recognize certain revenues due to significant uncertainty regarding the collection of receivables, leading to a reduction in both operating income and net profit attributable to shareholders for 2025. Additionally, the company further communicated with the auditors to perform impairment tests on assets showing signs of impairment. Based on the prudence principle, adjustments were made to asset impairment losses for inventories, fixed assets, and other assets, resulting in a corresponding decrease in net profit attributable to shareholders.