SHENGUAN HLDGS (00829) announced that the group is expected to record a loss attributable to owners of the parent company of approximately RMB 65 million to RMB 78 million for the year ending December 31, 2025. This contrasts with a profit attributable to owners of the parent company of approximately RMB 26.7 million for the year ended December 31, 2024. The board of directors identified the following as the primary negative factors affecting this year's performance. Firstly, the overall operating environment remains challenging. The group's sales revenue was largely flat compared to the previous year. However, inventory write-downs and provisions increased significantly. This was mainly due to substantial product trial production and equipment modifications conducted between 2022 and 2024 for new product development and the installation of new production lines. Finished goods inventory from these trial productions has not yet been fully absorbed by the market. The post-tax loss from daily operating activities was approximately RMB 22 million to RMB 35 million. Secondly, the remaining post-tax loss is primarily attributable to an adjustment in the overall financial planning between the group's companies in the People's Republic of China and Hong Kong. One of the group's Hong Kong companies has fully repaid all interest-bearing loans to another group company in China. The funds for the Hong Kong subsidiary's repayment came from dividends already paid by one of its Chinese subsidiaries, resulting in an expense and provision for Chinese dividend withholding tax.