Core Viewpoint - Huajin International Holdings (02738.HK) anticipates a significant decline in revenue and a shift from profit to loss for the six months ending June 30, 2025, primarily due to weak market demand and increased competition [1][3]. Revenue and Profit Summary - The company expects revenue to be between approximately RMB 720 million and RMB 780 million, representing a decrease of about RMB 24.265 billion to RMB 24.865 billion compared to the previous period, a decline of approximately 75.7% to 77.5% [1]. - The expected loss attributable to shareholders is between RMB 490 million and RMB 530 million, contrasting with a profit of approximately RMB 16.9 million in the previous period [1]. Reasons for Revenue Decline - Weak market demand and intensified competition have led to a dual pressure on both domestic and international demand, resulting in insufficient order growth and price competition among industry players [3]. - The impact of trade environment and tariff policies has caused a significant drop in sales volume and average selling prices for downstream customers, further exacerbated by order cancellations from long-term clients [3]. - Rising raw material costs, particularly for hot-rolled steel coils, have not been matched by timely price adjustments for the company's products, leading to increased production costs [3]. - Low capacity utilization has resulted in higher unit processing costs due to fixed manufacturing expenses being spread over a significantly reduced production volume [3]. Company Overview - Huajin International Holdings is a cold-rolled carbon steel processing company located in Jiangmen City, Guangdong Province, China, primarily engaged in processing hot-rolled steel coils into customized cold-rolled steel strips, plates, welded steel pipes, and galvanized steel products [4][5]. - The company serves a wide range of industries, including light industry hardware, home appliances, furniture, motorcycle/bicycle parts, and LED lighting, providing customized processing, cutting, storage, and distribution services for cold-rolled and galvanized steel products [5].

Group 1 - The company expects to record revenue between approximately RMB 720 million and RMB 780 million for the six months ending June 30, 2025, representing a decrease of approximately RMB 2,426.5 million to RMB 2,486.5 million compared to approximately RMB 3,206.5 million for the six months ending June 30, 2024, indicating a decline of about 75.7% to 77.5% [1] - The company anticipates a loss attributable to shareholders ranging from RMB 490 million to RMB 530 million, in contrast to a profit of approximately RMB 16.9 million in the comparative period [1] - The board attributes the decline in revenue and resulting losses to several factors, including weak market demand and intensified competition, dual pressure from domestic and external demand, impacts from trade environment and tariff policies, rising raw material costs, and low capacity utilization leading to increased unit processing costs [1]