China Treasures New Materials Group Ltd. released a profit warning indicating a sharp downturn in earnings for the year ended 31 December 2025 (FY2025). Management expects net profit attributable to equity shareholders to come in at no less than RMB28.00 million, a drop of at least 74.82 % from the RMB111.20 million recorded in FY2024.

The decline is attributed to four primary factors:

1. Revenue Pressure: Weaker sales of biodegradable shopping bags and produce bag rolls reduced gross profit.

2. Higher R&D Spend: Increased investment in research and development further compressed margins.

3. One-off Lease Refund Absent: FY2024 benefited from a one-time refund tied to the early termination of the Huizhou factory lease, which does not recur in FY2025.

4. One-off Government Grant Absent: The prior year also included a government grant related to the company’s listing, absent in the current period.

The figures are based on unaudited management accounts and have neither been reviewed by external auditors nor by the audit committee. Final audited results are scheduled for release on 31 March 2026.

Shareholders and prospective investors are urged to exercise caution when trading the company’s securities.