Understanding the Market | RONGTA TECH fell over 6%, expected net loss in the first half not to exceed 7 million yuan, turning from profit to loss year-on-year
RONGTA TECH fell over 6%, as of the time of writing, down 6.28%, reported at HKD 8.8, with a trading volume of HKD 1.1816 million. In terms of news, RONGTA TECH issued a profit warning, with the group expecting to incur a net loss of no more than RMB 7 million for the six months ending June 30, 2025, while for the six months ending June 30, 2024, it expects a net profit of approximately RMB 14.4 million. The announcement pointed out that the main reason for the shift from profit to loss is the increase in general and administrative expenses, including non-recurring listing expenses, slower project approval progress from some clients, and further improvements requested by clients on product specifications before delivery, leading to a decrease in revenue, as well as increased R&D expenses. Excluding the impact of non-recurring listing expenses, the expected net profit will not be less than RMB 9.5 million
According to the Zhitong Finance APP, RONGTA TECH (09881) fell over 6%, with a decline of 6.28% as of the time of writing, trading at HKD 8.8, with a transaction volume of HKD 1.1816 million.
On the news front, RONGTA TECH issued a profit warning, stating that the group expects to incur a net loss of no more than RMB 7 million for the six months ending June 30, 2025, while for the six months ending June 30, 2024, it expects a net profit of approximately RMB 14.4 million. The announcement pointed out that the main reason for the shift from profit to loss is the increase in general and administrative expenses, including non-recurring listing expenses, slower project approval progress from some clients, and further improvements requested by clients on product specifications before delivery, leading to a decrease in revenue, as well as increased R&D expenses. Excluding the impact of non-recurring listing expenses, the expected net profit will not be less than RMB 9.5 million
