Huajin International Holdings Limited on 26 March 2026 warned shareholders that it expects to post a net loss attributable to owners of between RMB1.18 billion and RMB1.28 billion for the year ended 31 December 2025, sharply wider than the RMB91.20 million loss recorded in 2024.

Management attributes the projected downturn to eight principal factors:

1. Market Environment – Slowing downstream investment, restricted exports and aggressive price competition compressed gross margins and reduced revenue. 2. Trade Frictions – Higher tariffs and a volatile external environment cut customers’ sales volumes and triggered forfeiture of approximately RMB390.00 million in commitment fees and deposits after minimum offtake terms were missed. 3. Cost Inflation – Rising raw-material prices, notably hot-rolled coils, could not be fully passed on, increasing production costs. 4. Capacity Utilisation – Significantly lower utilisation elevated unit processing costs as fixed overheads were spread across reduced output. 5. Asset Impairments – Fixed-asset write-downs are expected to total roughly RMB297.50 million. 6. Credit Risk – Expected credit losses on trade and other receivables are estimated at RMB46.00 million. 7. Inventory – Year-end stock write-downs are projected at RMB12.70 million. 8. Business Model Transition – Since H2 2025 the Group has shifted to processing with supplied materials; a customer adaptation phase curtailed output and revenue in the short term.

The annual results are still being finalised and remain unaudited; audited figures are scheduled for release by end-March 2026. Shareholders and potential investors are advised to exercise caution when dealing in Huajin International’s shares.