NEW GONOW RV (00805) has announced its financial forecast for the fiscal year ending December 31, 2025. The group expects its annual net profit to be approximately RMB 31 million to RMB 40 million. This represents a decrease of approximately 12.07% to 31.85% compared to the net profit of RMB 45.49 million reported for the fiscal year ending December 31, 2024.

This projected decline is attributed to several key factors. Recent macroeconomic volatility during the 2025 fiscal year negatively impacted sales performance, primarily due to an unexpected downturn in the RV segment. This contraction was triggered by emerging stagflationary pressures and a reduction in discretionary consumer spending, which was further exacerbated by consecutive interest rate hikes by the Reserve Bank of Australia during the period.

Additionally, the launch of new hybrid off-road trailer models resulted in negative gross margins. This was caused by elevated initial production costs during the scale-up phase and intensified competitive pricing pressures within the market.

Furthermore, strategic investments in the dealership network led to increased sales expenses. These investments, which include upfront costs for expanding company-owned stores, involve a longer growth cycle. Consequently, overhead costs have risen at a rate that has outpaced the group's modest revenue growth.