SHENGUAN HLDGS (00829) announced its financial results for 2025. The company reported revenue of approximately 1.023 billion yuan, representing a slight increase of 0.6% compared to the previous year. However, the company swung to a loss attributable to owners of the parent, recording a loss of 69.773 million yuan. This compares to a profit in the same period last year. The loss per share was 2.2 fen.

The gross profit margin declined significantly from about 16.8% in the prior year to approximately 10.2% for the current year. Excluding factors such as inventory write-downs and provisions or their reversals, the gross profit margin still decreased from 18.9% last year to about 14.8% this year.

The decline in the gross margin was attributed to two main factors. Apart from the increase in inventory write-downs and provisions, the Group had to implement accelerated sales incentives for products made with older processes and finished goods related to new product trials from past years. This was necessitated by a significant increase in the sales proportion of six new major product series among downstream customers, which impacted overall profitability.