D&G TECH (01301) issued a profit warning, expecting a net loss attributable to shareholders of approximately 12 to 18 million yuan in 2025, compared to a profit in the same period last year.

D&G TECH (01301) announced that the net profit attributable to shareholders of the company for the year ended December 31, 2024 is expected to be approximately RMB 4 million. The group expects to incur a net loss attributable to shareholders of the company for the year ending December 31, 2025 (the current year) ranging from RMB 12 million to RMB 18 million. The expected net loss is mainly due to the following factors: (i) decline in overseas sales; (ii) a lower amount of reversal of impairment loss on trade receivables recognized in the current year compared to approximately RMB 9 million recognized as of December 31, 2024; (iii) slower inventory turnover and an increase in potential obsolete inventory due to weak market demand, leading to an expected increase in inventory provision; and (iv) an increase in sales and distribution expenses due to higher transportation and freight costs.