CHANGAN RH issued a profit warning, expecting a mid-term loss of approximately 3 million yuan, a year-on-year turnaround from profit to loss
CHANGAN RH issued a profit warning, expecting a mid-term loss of approximately 3 million yuan for the period ending June 30, 2025, compared to a net profit of 2.8 million yuan in the same period last year. Despite an increase in sales revenue, the loss is mainly due to a decline in gross profit margin, rising costs of raw materials and energy, and increased distribution expenses leading to higher sales costs
According to the announcement from CHANGAN RH (08139), the group expects to incur a loss of approximately RMB 3 million for the six months ending June 30, 2025, compared to a net profit of approximately RMB 2.8 million for the six months ending June 30, 2024.
The announcement stated that although sales revenue has increased, the expected loss is mainly due to a decline in the gross profit margin during the current period compared to the previous period. This is attributed to the rise in costs of raw materials and energy. Additionally, the increase in distribution expenses has also led to higher sales costs during the current period
