Zhengye International (03363) has announced that the group expects its net profit attributable to company owners for the year ending December 31, 2025, to be approximately RMB 12 million to RMB 16 million (2024: profit of approximately RMB 36.4 million). This decrease is primarily attributable to the following factors. Although the cost of base paper, the main raw material for paper packaging products, has declined, orders from the group's existing home appliance customers for packaging business have decreased due to uncertainties related to trade policies and tariff factors. Furthermore, the group's efforts to expand new packaging business have led to increased investment in related equipment and higher depreciation expenses, resulting in an overall decrease in the gross profit of the paper packaging segment compared to the same period last year. On the other hand, the gross profit of the group's papermaking business has increased compared to the same period last year. However, this growth was insufficient to offset the decline in gross profit from the paper packaging business, leading to an overall decrease in the group's gross profit compared to the previous year.