Shandong Baogai New Materials Technology Co., Ltd. (BAOGAI) expects profit attributable to owners for the six months ended 30 June 2026 to fall to between RMB1.50 million and RMB2.00 million, according to a profit warning filed with Hong Kong’s GEM board on 7 August 2026. This compares with RMB5.10 million earned in the same period of 2025, implying a year-on-year decline of roughly 61%–71%.

Management attributes the deterioration to three main factors: 1. Revenue contraction stemming from delayed product deliveries caused by project postponements at certain downstream customers. 2. Rising raw-material prices, which lifted production costs. 3. Higher general and administrative expenses, largely linked to the company’s recent H-share listing on the GEM board.

BAOGAI is still finalising its interim financial statements; the audited results are scheduled for release on 25 August 2026. Shareholders and potential investors are advised to exercise caution when trading the company’s securities in the meantime.