Core Viewpoint - Huirong Technology, a baking ingredient company, forecasts a net loss of between 22 million and 31 million yuan for 2025, marking a shift from profit to loss due to rising costs and declining revenues [1][3]. Cost Factors - The primary reason for the loss is the significant increase in the price of palm oil, a key raw material for the company's main product, the cream-based margarine, which has led to higher production costs [1][3]. - The rigid increase in costs has severely compressed profit margins, contributing to the overall decline in profitability [1][3]. Revenue Factors - A structural adjustment in traditional baking channels and changes in market demand have resulted in a noticeable decline in sales volume of the company's core products, leading to reduced operating revenue [2][4]. - The combination of rising costs and declining revenues has weakened the company's scale effects, ultimately resulting in an annual loss [2][4]. Non-Recurring Gains - In 2025, non-recurring gains are expected to impact the net profit attributable to shareholders by approximately 12 million yuan, primarily from financial product returns and government subsidies, which partially offset operational losses [2][4]. - Excluding non-recurring gains, the operational loss is more significant, highlighting the urgent need to restore profitability in the core business [2][4]. Business Model and Challenges - Huirong Technology operates as a comprehensive enterprise focused on the research, production, and sales of baking and food ingredients, with a product system centered around cream products suitable for various consumption scenarios [5]. - The anticipated loss for 2025 reflects simultaneous challenges faced by both core products and traditional sales channels, exposing the company's reliance on raw material prices and traditional baking channels [5].