HXTL issued a profit warning, expecting a mid-term net loss attributable to shareholders of no less than approximately 68 million yuan, a year-on-year turnaround from profit to loss
HXTL issued a profit warning, expecting a net loss attributable to shareholders of no less than 68 million yuan for the six months ending June 30, 2025, compared to a net profit of 26.6 million yuan in the same period last year. It is expected that operating profit will decline by 50% to 60%, falling to approximately 33.7455 million yuan to 26.9964 million yuan. The board pointed out that the decline in revenue and gross profit margin is the main reason, while increased interest expenses and income tax have also contributed to the net loss
According to the announcement from HXTL (01085), the company expects to incur an unaudited net loss attributable to equity shareholders of not less than approximately RMB 68 million for the six months ending June 30, 2025. In comparison, the company recorded an unaudited net profit attributable to equity shareholders of approximately RMB 26.6 million for the same period last year. Meanwhile, the unaudited operating profit for this reporting period is expected to decline by approximately 50% to 60% compared to the unaudited operating profit of approximately RMB 67.491 million for the six months ending June 30, 2024, resulting in an estimated range of approximately RMB 33.7455 million to RMB 26.9964 million.
The Board believes that the year-on-year decrease in operating profit for this reporting period is primarily due to a decline in revenue compared to the same period last year and a year-on-year decrease in the Group's gross profit margin. Additionally, due to increased interest expenses and income tax during this reporting period, the company expects to incur an unaudited net loss attributable to equity shareholders compared to the unaudited net profit attributable to equity shareholders for the same period last year
