GAPACK (00468) issues a profit warning, expecting a net profit of approximately RMB 48-58 million for the year, a year-on-year decrease of 82.8% to 79.2%.

GAPACK (00468) announced that it expects to achieve an annual net profit of approximately RMB 48 million to RMB 58 million for the year ending December 31, 2025, a decrease of 82.8% to 79.2% compared to the annual net profit of approximately RMB 278 million recorded in 2024; and expects revenue for the current year to be approximately RMB 1.86 billion, a decrease of approximately 17.3% compared to revenue of approximately RMB 2.25 billion in 2024. The reason for the decrease in net profit for the current year is primarily due to changes in accounting treatment for international business investments in March 2025, resulting in a significant decrease in related profit share. Additionally, the financial information of financial assets was not available, which led to no corresponding fair value gains on financial assets recognized in profit and loss as in the previous year, and a decrease in gross profit margin for export business. The decrease in revenue for the current year is attributed to a decrease in total sales volume and export product prices.