HK Stock Market Move | JINGCHENG MAC(00187) falls more than 7%, expected mid-term net loss to exceed 18 million RMB, pressure on gas storage and transportation sector export business.

JINGCHENG MAC (00187) fell by over 7% after issuing a profit warning, dropping 7.61% to HK $5.1 as of the time of reporting, with a trading volume of HK $49.01 million. On the news front, on July 14, JINGCHENG MAC announced that it is expected to incur a net loss attributable to shareholders of the listed company of RMB 15-18 million in the first half of 2025, compared to an increased loss of approximately RMB 11.625-14.625 million from the same period last year (according to statutory disclosure data). It is expected to incur a net loss attributable to shareholders of the listed company of RMB 19.6-23.5 million after deducting non-recurring gains and losses in the first half of 2025. The main reasons for the company's current period loss are as follows: the export business of the gas storage and transportation sector is affected by international trade frictions, facing significant downward pressure, leading to a decline in sales volume and profits of some products; new industries such as hydrogen energy are still in the early stages of development, and the market development scale is lower than expected. Although the company's related business has achieved year-on-year growth, the profit level in this period is lower than expected due to intensified market competition. At the same time, in order to enhance core competitiveness, the company has increased its investment in new product research and development, industry chain layout, etc., resulting in an increase in research and development expenses compared to last year.