Xiasha Precision: It is expected that the net profit will be a loss of 12-18 million yuan in 2025.

Xia Xia Precision announced that it is expected to incur a net loss of 12-18 million RMB in 2025. The main reasons for the change in performance are as follows: 1. The automotive gear business accounts for approximately 60% of the company's revenue, and the decrease in gross profit margin in this period due to intensified competition in the domestic automotive industry has led to a decline in profits. 2. The company made a provision for inventory impairment in accordance with the "Enterprise Accounting Standards" of approximately 35 million RMB, affecting the annual profits. 3. During the reporting period, with the fixed assets of the funds raised for investment projects gradually becoming fixed and the increase in the number of employees, fixed costs such as equipment depreciation and personnel salaries have also increased. Due to the scale effect of the investment project not yet being released, the unit cost of products has increased, affecting the annual profits.