HXTL (01085) issues a warning of profit decline, expecting a shareholder's net loss of no less than about 68 million yuan in the midterm, turning from profit to loss year-on-year.

HXTL(01085) announced that the company is expecting to incur a net loss attributable to equity shareholders of approximately RMB 68 million for the six months ending on June 30, 2025. In comparison, the company recorded a net profit attributable to equity shareholders of approximately RMB 26.6 million for the same period last year. Additionally, the unaudited operating profit for this reporting period is expected to decrease by around 50% to 60% compared to the six months ending on June 30, 2024, ranging from approximately RMB 33.74 million to RMB 26.99 million. The Board of Directors believes that the decrease in operating profit for this reporting period is mainly due to a decrease in revenue and a decrease in the group's gross profit margin compared to the same period last year. Furthermore, due to an increase in interest expenses and income tax in this reporting period, it is anticipated that the company will incur a net loss attributable to equity shareholders for this reporting period compared to the net profit attributable to equity shareholders for the same period last year.