RONGTA TECH (09881) issues profit warning, expecting a year-on-year decrease in net profit in 2025 to not exceed approximately 3 million yuan.

Rongtatech (09881) announces that the group expects to achieve a net profit of approximately RMB 3 million for the current period (ending on December 31, 2025), while a net profit of approximately RMB 41.3 million was achieved for the period ending on December 31, 2024. The Board of Directors believes that the expected decrease in net profit is mainly attributed to (including): (i) the immediate decrease in demand for certain products due to delays in the implementation of government policies by local governments, which resulted in some customers delaying, changing, or reducing their purchasing plans; (ii) an increase in general and administrative expenses, mainly due to one-off non-recurring expenses related to the listing of the company's H shares on the Hong Kong Stock Exchange in June 2025, as well as an increase in employee costs compared to the period ending on December 31, 2024, mainly due to an increase in the number of employees and wages; and (iii) an increase in sales and marketing expenses related to the increase in e-commerce activities. Furthermore, the announcements made by the company on July 3, 2025, July 25, 2025, and October 20, 2025, concerning civil lawsuits are also mentioned. As of the date of this announcement, the impact of the civil lawsuits on the audited performance of the current period is still being evaluated and may or may not affect the net profit for the current period. As of the date of this announcement, there have been no significant developments in the civil lawsuits since the last announcement by the company.