Ridge Outdoor International Limited issued a profit warning for the six months ended 30 June 2026, projecting profit attributable to equity shareholders of about RMB22.50 – 23.30 million. This represents a year-on-year contraction of approximately 42.2%-44.2% from RMB40.30 million recorded in the first half of 2025.

Management attributes the earnings decline to four main factors:

1. Revenue pressure from Europe: Heightened geopolitical tensions and a rebound in global inflation dampened consumer confidence—particularly in Europe, the Group’s largest market—resulting in lengthened OEM order cycles and lower overall sales during the period.

2. Adverse currency movements: The Group faced foreign-exchange losses in 1H 2026, versus gains a year earlier, eroding net profitability.

3. Rising raw-material costs: London Metal Exchange aluminum prices climbed more than 20% year-on-year, pushing up unit production costs. Although gross margin held broadly steady, supported by a larger original brand manufacturer (OBM) contribution and an improved product mix, the cost surge compressed overall profitability.

4. Higher operating expenses: Continued investment to expand the OEM franchise and enhance OBM competitiveness lifted selling and administrative expenses, further weighing on net results.

Operationally, Ridge Outdoor reported that its core business fundamentals remain intact, with manufacturing and supply-chain activities proceeding normally. The OBM segment accounted for more than 10% of total revenue and maintained rapid growth, while the OEM/ODM division continued to broaden its customer base and product portfolio to support order recovery in the second half of the year.

The interim figures are based on unaudited management accounts and are subject to review. The company aims to release its full 1H 2026 results by the end of August 2026 and advises shareholders and prospective investors to exercise caution when dealing in its shares.