DALIPAL HLDG (01921) announced that the group expects its net loss for the six months ended June 30, 2025 to narrow significantly by over 70% compared to the same period last year (unaudited net loss of RMB 69.8 million for the six months ended June 30, 2024).

During the first half of the year, the group's wholly-owned subsidiary, Dalipal Special Tube Co., Ltd., achieved a turnaround to profitability through substantial adjustments to its product structure, which brought operational advantages.

The group's losses in the first half of 2025 were primarily attributed to the following factors:

Early-stage investment in the Saudi project: The group actively advanced the in-depth implementation of the Dammam production base project in Saudi Arabia, including preliminary construction preparations and local compliance work. While the Saudi project is expected to have a very positive impact on the group's medium to long-term revenue, it affected current period earnings to some extent.

Intense industry competition: The domestic energy equipment industry is undergoing transformation, with supply-demand relationships still in a cyclical adjustment phase. The industry remains highly competitive, with overall profit margins constrained, resulting in relatively low operating profits for Dalipal Special Tube.

With the gradual commissioning of the group's new intelligent production line in Cangzhou, China, and continuous optimization of product structure and market positioning, the group's competitiveness will continue to improve. The board of directors remains confident about the group's future prospects.