Ge Long Hui A P P·2026-01-30 11:10Summary of Key Points Core Viewpoint - *ST Sitong (603838.SH) is expected to report significant losses for the year 2025, with projected total profits ranging from -83 million to -65 million yuan and net profits attributable to shareholders between -84 million and -66 million yuan, indicating a challenging financial outlook for the company [1][2]. Financial Projections - The company anticipates a total profit for 2025 of between -83 million and -65 million yuan [1] - The expected net profit attributable to the parent company is projected to be between -84 million and -66 million yuan [1] - The net profit after deducting non-recurring gains and losses is estimated to be between -92 million and -73 million yuan [1] - The expected operating revenue for 2025 is forecasted to be between 360 million and 410 million yuan [1] - The net assets at the end of 2025 are projected to be between 850 million and 940 million yuan [1] Reasons for Performance Decline - The primary reasons for the expected performance decline include: 1. Decreased market demand for products due to ongoing international geopolitical conflicts and changing market conditions, leading to a decline in export revenue from the ceramic business and increased costs due to lower export tax rebates, resulting in reduced gross profit and gross margin [2] 2. The inclusion of Dalian Yiwei New Materials Co., Ltd.'s full-year operating results in the consolidated financial statements is expected to increase operating revenue by approximately 140 million yuan, but high raw material procurement costs and declining sales prices have led to significant losses [2] 3. The company's export business is primarily settled in US dollars, and increased exchange rate fluctuations have resulted in higher foreign exchange losses [2] 4. There are indications of asset impairment based on cautious analysis of the current market competition and future development trends, leading to increased provisions for asset impairment losses, particularly concerning fixed assets and inventory [2]