Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-07-15 02:40Core Viewpoint - The company anticipates a significant reduction in net profit loss for the first half of 2025, primarily due to the completion of a major asset sale in December 2024, which has improved operational conditions [2]. Financial Performance Expectations - The performance forecast period is from January 1, 2025, to June 30, 2025, with expectations of a turnaround from loss to profit or a decrease in loss [1]. - The net profit attributable to shareholders for the first half of 2025 is expected to show a substantial decrease in loss compared to the previous year [2]. Reasons for Performance Changes - The reduction in net profit loss is attributed to the divestiture of underperforming assets, which has created room for operational improvement [2]. - The company is facing challenges such as intense market competition, declining revenue, depreciation of fixed assets, and interest expenses from financing loans [2]. - The company plans to concentrate resources on its subsidiary, Baoying Construction Technology, leveraging its state-owned and listed company advantages to meet conditions for lifting delisting risk warnings and achieving sustainable development [2]. Risk Factors - The company’s equity attributable to shareholders was negative as of 2024, leading to a delisting risk warning under Shenzhen Stock Exchange regulations [3]. - The company has received a negative internal control audit report, which has resulted in additional risk warnings for its stock trading [3][4]. - If the company fails to meet specific financial criteria in 2025, it may face termination of its stock listing [4]. Communication with Auditors - The performance forecast data is based on preliminary calculations by the company's finance department and has not been audited by the accounting firm [1][5].