SAMPLE TECH (01708) has announced an expected net loss attributable to owners of the parent company for the fiscal year ending December 31, 2025. The projected loss is estimated to be between approximately RMB 60 million and RMB 80 million. This compares to a net loss attributable to owners of approximately RMB 420 million recorded for the previous fiscal year ended December 31, 2024, indicating a significant narrowing of the financial loss.

The primary reasons for the anticipated continued loss in the current year are attributed to the macroeconomic environment, intensified industry competition, and persistently high costs of raw material procurement. These factors have led to a decline in gross profit margin and a further contraction in profit space.

The considerable reduction in the net loss compared to the previous year is mainly due to two factors. Firstly, asset impairment losses and provisions have decreased significantly from the prior year. In the 2024 fiscal year, a provision of approximately RMB 157 million was made for litigation cases. Secondly, a change in accounting estimates is expected to reduce the net loss attributable to owners of the parent company by approximately RMB 146 million.