Zhengyuan Geomatics Group (688509.SH) issues a warning of expected losses, with projected increase in losses in 2024 as operating revenue falls short of expectations.

Zhengyuan Geomatics Group (688509.SH) announced that, according to preliminary calculations by the finance department, it is expected that the net profit attributable to the owners of the parent company in 2024 will decrease by RMB 116,584.7 million to RMB 176,584.7 million compared to -RMB 33,415.3 million in the same period last year, a year-on-year decrease of 348.90% to 528.45%. The net profit after deducting non-recurring gains and losses attributable to the owners of the parent company is expected to decrease by RMB 118,218.7 million to RMB 178,218.7 million compared to -RMB 41,781.3 million in the same period last year, a year-on-year decrease of 282.95% to 426.55%. During the reporting period, due to the impact of macroeconomic and industry market factors, some of the company's customers tightened their budgets, project bidding was delayed, and business expansion in some market regions was slow, resulting in a year-on-year decrease in operating income. Additionally, insufficient market demand and intensified competition led to a year-on-year decrease in gross profit margin. Despite the company's efforts to reduce costs and increase efficiency, the gross profit still did not fully cover the expenses. Moreover, impairment provisions increased year-on-year due to lower-than-expected operating receipts, leading to an overall decline in the company's performance. During the reporting period, the company increased sales investment, expanded market service coverage, continued to expand the customer market on the enterprise side, transformed the marketing model, and increased sales expenses year-on-year. It also continued to carry out key core technology research and development efforts, with an increase in research and development investment intensity year-on-year.