ZHENGWEI GROUP (02147) Issues Profit Warning, Expects Comprehensive Net Loss After Tax of No Less Than Approximately RMB 108 Million for 18 Months Ending June 30, 2025

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Sep 22

ZHENGWEI GROUP (02147) announced that the group expects to record a comprehensive net loss after tax of no less than approximately RMB 108 million for the 18 months ending June 30, 2025, compared to a comprehensive net profit after tax of approximately RMB 67.5 million for the year ended December 31, 2023. The board of directors believes that the decline in financial performance for the 18 months ending June 30, 2025, resulting in the group's estimated comprehensive net loss after tax, is primarily due to a significant increase in direct material costs leading to a substantial rise in cost of sales, with the increase exceeding the corresponding revenue growth rate. This has resulted in the group recording a comprehensive gross loss for the 18 months ending June 30, 2025, compared to a comprehensive gross profit for the year ended December 31, 2023.

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