RONGTA TECH (09881) announced that the group expects to record a net profit for the current period (the year ending December 31, 2025) of no more than approximately RMB 3 million, compared to a net profit of approximately RMB 41.3 million for the year ended December 31, 2024. The board attributes the anticipated decrease in net profit primarily to the following factors: (i) a reduction in revenue due to delays, changes, or reductions in procurement plans by certain customers, stemming from a) deferred implementation of government policies by local authorities, which lowered immediate demand for certain products, and b) further product specification improvements requested by the group's customers prior to delivery, or additional testing required before launching or discontinuing certain product lines; (ii) an increase in general and administrative expenses, mainly due to one-off non-recurring listing expenses incurred during the period as a result of the company's H-share listing on the Stock Exchange in June 2025, as well as higher employee costs compared to the year ended December 31, 2024, driven by an increase in headcount and salaries; and (iii) increased sales and marketing expenses associated with greater e-commerce activities. Reference is also made to the company's announcements dated July 3, 2025, July 25, 2025, and October 20, 2025, regarding a civil lawsuit. As of the date of this announcement, the potential impact of the civil lawsuit on the audited results for the current period is still under assessment and may or may not affect the net profit for the period. As of the date of this announcement, there have been no material developments in the civil lawsuit since the company's last announcement.