BAOGAI (08090) has issued a profit warning, forecasting that its net profit attributable to shareholders for the six months ending June 30, 2026, will be approximately RMB 1.5 million to RMB 2 million. This represents a sharp decline from the RMB 5.1 million in profit recorded during the same period last year.

The company attributed the expected drop in profit to a reduction in revenue and an increase in costs and expenses. These factors were primarily driven by project delays from several downstream customers, which have resulted in postponed product deliveries. Additionally, market price fluctuations have put upward pressure on raw material costs, and general and administrative expenses have risen due to the listing of the company's H shares on the GEM board of the Stock Exchange of Hong Kong.