"Profit Warning" RONGTA TECH forecasts last year's net profit to decrease to no more than 3 million RMB

RONGTA TECH (09881.HK) issued a profit warning, expecting a net profit of no more than RMB 3 million for the fiscal year 2025, compared to RMB 41.3 million recorded in the previous year. The decrease in profit is mainly due to local governments delaying the implementation of government policies, leading to a decline in immediate demand for several products; customers requesting further improvements or additional testing of product specifications before delivery, resulting in some customers delaying, changing, or reducing their procurement plans, leading to decreased revenue; increased general and administrative expenses; and increased sales and marketing expenses related to the growth of e-commerce activities