RUICHANG INTL HOLDINGS (01334) has announced that the group expects to achieve a net profit of approximately RMB 4 million to RMB 5.5 million in 2025. This represents a decrease of roughly 46.6% to 61.2% compared to the previous year.

The anticipated decline in net profit is primarily attributed to several factors. Firstly, continued sluggishness in capital investment within the petroleum refining and petrochemical industries, coupled with weak downstream market demand, has led some clients to postpone or delay orders for major equipment. This is due to their reassessment of internal capacity plans and project timelines, resulting in delays to the group's product deliveries and revenue recognition, thereby causing revenue growth to fall short of expectations. Secondly, intensified competition in the domestic market has exerted pressure on profit margins, leading to a decrease in the gross profit margin. Lastly, the group's overseas market operations and its phosphorus-containing waste recycling project in Huangshan are still in development and expansion phases. This ongoing development has contributed to increased employee costs, sales expenses, and administrative expenses.