Shaanxi Fenghuo Electronics (000561.SZ) issued a profit warning, expecting to incur a net loss of 118 million to 168 million yuan in 2024, a shift from profit to loss compared to the previous year.

Shaanxi Fenghuo Electronics (000561.SZ) has released its performance forecast for the year 2024, expecting a net loss attributable to shareholders of the listed company of 1.18 billion to 1.68 billion yuan for the full year, a turn from profit to loss compared to the previous year. During the reporting period, the company's sales orders did not meet expectations due to the structural adjustment of the industry, leading to a decrease in operating income and a decline in gross profit margin. In order to meet market and customer demand changes and secure more orders, the company continued to maintain a high level of investment in research and development, resulting in high research and development expenses. Additionally, credit impairment losses increased due to the lower-than-expected sales receipts during the reporting period, leading to a decrease in profits.