Nanjing Panda Electronics Co., Ltd. (00553) announced that, based on preliminary calculations by the company's finance department, it expects to achieve a net profit attributable to owners of the parent company of approximately RMB 10 million to RMB 15 million for the full year of 2025. This represents a turnaround from a loss to a profit compared to the same period last year.

The company also anticipates an adjusted net loss attributable to owners of the parent company, excluding non-recurring gains and losses, of approximately RMB 259 million to RMB 254 million for 2025.

According to the announcement, the completion of the equity transfer in the associate company, Nanjing Ericsson Panda Communication Co., Ltd., during the period generated disposal gains. These gains were a significant positive factor contributing to the change in the net profit attributable to the parent company's owners.

The company's smart manufacturing business, along with its power supply and communication businesses, are currently in a transitional period of transformation and adjustment. The expansion of new customer bases has fallen short of expectations, and these operations have not yet achieved sales at scale. Intensifying market competition has placed operational pressure on these segments, adversely affecting the adjusted net profit attributable to owners of the parent company.

In light of the current operational situation and the status of its assets, the company conducted thorough impairment tests in strict accordance with the requirements of the Accounting Standards for Business Enterprises. Based on these tests, provisions for credit impairment losses and asset impairment losses were recognized, which correspondingly impacted the net profit attributable to the parent company's owners.