SHENGLI PIPE (01080) issued a profit warning, expecting that the loss attributable to shareholders for the year 2025 will not exceed approximately RMB 20 million, representing a reduction from the previous year.

SHENGLI PIPE (01080) announced that the group is expected to incur a net loss attributable to owners of the company for the year ending December 31, 2025 (2025 fiscal year) not exceeding approximately RMB 20 million and a total comprehensive loss attributable to owners of the company not exceeding approximately RMB 50 million. For the year ending December 31, 2024 (2024 fiscal year), the group incurred a net loss attributable to owners of the company of approximately RMB 42.56 million and a total comprehensive loss attributable to owners of the company of approximately RMB 77.21 million. The board of directors believes that the expected decrease in the net loss attributable to owners of the company and the total comprehensive loss attributable to owners of the company for the 2025 fiscal year is mainly due to the following reasons: First, the group's sales volume in the welded pipe business for the 2025 fiscal year increased significantly compared to the 2024 fiscal year, and the high-margin pipeline and corrosion protection services in certain countries also increased significantly compared to the 2024 fiscal year, leading to a rise in gross profit from approximately RMB 59.10 million in the 2024 fiscal year to approximately RMB 109 million in the 2025 fiscal year; and the group's share of profit in a jointly controlled company also increased from approximately RMB 14.60 million in the 2024 fiscal year to approximately RMB 18.40 million in the 2025 fiscal year. Second, the group's administrative expenses increased by approximately RMB 93 million from approximately RMB 78.30 million in the 2024 fiscal year to approximately RMB 87.60 million in the 2025 fiscal year, mainly due to increased research and development investment in the 2025 fiscal year; and a one-time litigation provision of approximately RMB 19 million recognized in the 2025 fiscal year, partially offset by the above-mentioned increase in gross profit.