SAMPLE TECH (01708) issues profit warning, expecting a net loss attributable to shareholders of approximately 3.8 billion to 4.4 billion yuan for the year, a year-on-year turnaround from profit to loss.

Sample Tech (01708) announced that the Group is expected to incur a net loss attributable to the equity shareholders of the parent company of approximately RMB 380 million to RMB 440 million for the year ending December 31, 2024, compared to a net profit of approximately RMB 1.99 million for the year ending December 31, 2023. The expected losses during the period are mainly due to: 1) unexpected project payments and settlements leading to a significant increase in provision for credit impairment and impairment of contract assets compared to the same period last year; 2) losses of approximately RMB 150 million due to the Group's subsidiary companies being executed in related litigation cases and the company assuming joint and several liabilities for debt; 3) market demand contraction, intensified industry competition, resulting in some projects strategically winning bids at lower prices, compressing profit margins, and rising procurement costs, leading to a decrease in the Group's overall revenue and gross profit margin.