"Profit Warning" ZHENGYE INT'L product unit price declines, half-year profit expected to decrease significantly

ZHENGYE INT'L (03363.HK) issued a profit warning, expecting a profit of between RMB 1 million and RMB 3 million for the six months ending in June, compared to RMB 15.03 million in the same period last year. The decrease in profit is mainly due to a significant drop of over 8% in the selling prices of raw paper products and paper packaging products, while the prices of major raw material waste paper have risen, resulting in an overall decline in the group's gross profit margin of approximately 5%