CH TREASURES NM (02439) has announced a profit alert, forecasting that the net profit attributable to the company's equity holders for the fiscal year ending December 31, 2025, will decrease to not less than RMB 28 million. This compares to a net profit of approximately RMB 111 million for the previous fiscal year ended December 31, 2024. The Board of Directors attributes this anticipated decline primarily to the following factors: (i) a reduction in gross profit due to lower revenue in 2025, mainly stemming from decreased sales volumes of biodegradable plastic shopping bags and biodegradable roll-pack fruit and vegetable bags; (ii) an increase in research and development expenses during 2025; (iii) the absence in 2025 of a one-time lease termination refund recognized in 2024, which resulted from the early termination of a lease agreement for the Huizhou factory; and (iv) the non-recurrence in 2025 of a one-time government grant recognized in 2024, which was related to the company's successful listing on the Stock Exchange.