CH TREASURES NM(02439) issued a profit warning, expecting the net profit attributable to the parent company to decrease by not less than 28 million yuan in 2025 compared to the previous year.

CH TREASURES NM (02439) has announced that the group expects the net profit attributable to the equity holders of the company for the year 2025 (ending December 31, 2025) to decrease by approximately 111 million yuan compared to the year ended December 31, 2024 (2024). The net profit is expected to be no less than 28 million yuan. The board of directors believes that the decrease is mainly due to: (i) a decrease in gross profit in 2025 due to reduced revenue, mainly due to a decline in sales of biodegradable plastic shopping bags and biodegradable roll fruit and vegetable bags; (ii) an increase in research and development expenses in 2025; (iii) the non-inclusion of a one-time rental refund confirmed in 2024, which originated from the early termination of the lease agreement for the Huizhou factory; and (iv) the absence of one-time government grants related to the successful listing on the Hong Kong Stock Exchange in 2024, which did not occur in 2025.