MOBI DEV (00947) has announced that the group expects to report an unaudited consolidated net loss in the range of approximately RMB 90 million to RMB 100 million for the fiscal year ending December 31, 2025. This compares to a net loss of approximately RMB 120.53 million recorded in the same period of 2024. The group's consolidated loss is primarily attributed to several factors: (1) In 2025, order fulfillment fell short of expectations due to slowed network construction demand from domestic operators and global geopolitical factors, leading to a year-on-year decline in sales revenue; (2) Persistently high prices of bulk metal raw materials, such as copper, aluminum, and silver, resulted in a decrease in gross profit margin; and (3) U.S. dollar-denominated assets were significantly impacted by exchange rate fluctuations, generating foreign exchange losses that adversely affected profits.
Despite these challenges, the management retains strong confidence in the group's future development. The Board of Directors believes that the group maintains a robust financial position and sufficient working capital. In response to challenges posed by industry cyclical fluctuations, the group is accelerating its strategic transformation, building a diversified product portfolio, and expanding its global customer channels to enhance its competitive advantage in the market.
Currently, the group has achieved breakthroughs in the application of new materials. Leveraging prior R&D and production layouts, it has recently successfully launched new products including WIFI-type dielectric filters, ceramic antennas, and positioning modules, which have already completed customer sampling and certification processes. Concurrently, the group is collaborating with equipment manufacturer clients in satellite communication-related fields. These new business initiatives and products are expected to achieve scaled sales and contribute to performance growth by 2026.
Looking ahead, the group will persist in balancing product innovation with market expansion. On one hand, it will continue to increase R&D investment in core areas, overcome technical challenges, and conduct preliminary research on cutting-edge technologies to secure future technological advantages. On the other hand, it will further deepen cooperation with domestic and international operators and equipment manufacturers, while broadening customer channels in new business sectors to achieve diversification of its client base.
It is believed that with the accelerated commercialization of 5G-Advanced technology, the steady advancement of 6G forward-looking deployments, and the ongoing government support for upgrades in the communications industry, market demand is expected to gradually recover. Combined with the group's proactive positioning and resource accumulation in new business areas, there is potential for broader performance growth in the future. The Board remains optimistic about the growth opportunities in the telecommunications industry both in mainland China and global markets, continues to view the development prospects of new business areas favorably, and will persistently review the group's operations and strategies to address challenges.