Understanding the Market | ZHONGGAN COMM fell over 12%, expecting net profit in the first half of the year to decrease by up to 5 million yuan year-on-year

ZHONGGAN COMM fell over 12%, as of the time of publication, down 12.5%, reported at HKD 0.63, with a trading volume of HKD 2.9001 million. In terms of news, ZHONGGAN COMM issued a profit warning, expecting that for the interim period (ending June 30, 2025), the profit attributable to the company's equity shareholders will not exceed RMB 5 million, while the profit attributable to the company's equity shareholders for the same period last year was approximately RMB 18.6 million. The board of directors believes that the expected decrease in profit attributable to the company's equity shareholders is mainly due to the completion of several large telecommunications infrastructure service projects in the first half of 2025, and the limited number of orders from initial customers for newly awarded telecommunications infrastructure service projects, leading to a reduction in overall construction work; and a decrease in the number of contracts obtained for software solution service projects, resulting in a decrease in revenue and gross profit from digital solution services