ZHENGYE INT'L (03363) issues profit warning Expect that the net profit attributable to shareholders for the year 2025 will decrease by about 12 to 16 million yuan compared to the previous year.

ZHENGYE INT'L (03363) announced that the group is expected to achieve a net profit attributable to owners of the company of approximately RMB 12 million to 16 million for the year ending December 31, 2025 (2024: net profit of approximately RMB 36.4 million). This decrease is mainly due to the following reasons. Despite a decrease in the cost of raw materials of the paper packaging business, mainly due to a decrease in the cost of paper, uncertainties in trade policies and tariff factors have led to a decrease in orders for packaging business from the group's existing home appliance clients. The group's investment in equipment and depreciation costs for expanding new packaging businesses also increased, resulting in a decrease in the overall gross profit of the paper packaging business compared to the same period last year. On the other hand, the gross profit of the group's paper-making business increased from the same period last year. However, this growth was not able to offset the decrease in the gross profit of the paper packaging business, resulting in a decrease in the overall gross profit of the group compared to the same period last year.