Rongta Technology (Xiamen) (9881) investor relations material

Executive summary

• H1 2025 revenue fell 10.4% YoY to RMB145.6m; net loss was RMB6.4m versus net profit of RMB14.4m, reflecting lower sales, listing expenses and higher R&D costs.

• Gross margin held at 27.2%; adjusted net profit excluding listing expenses was RMB12.3m versus RMB21.6m in H1 2024.

Financial highlights

• Gross profit was RMB39.6m versus RMB43.9m; operating loss was RMB7.8m versus operating profit of RMB15.7m.

• Cost of sales fell 10.6% to RMB106.0m; other income declined 19.2% to RMB6.3m as government grants and operational VAT refunds decreased.

• Selling and marketing expenses rose 7.1% to RMB13.6m; G&A increased 80.5% to RMB31.4m, including RMB18.7m in listing expenses.

• R&D expenses rose 52.5% to RMB9.3m, reflecting added staff and benefits and lower capitalization of R&D projects.

• Basic and diluted EPS were both a loss of RMB0.08 versus earnings of RMB0.18; income tax was a RMB2.4m credit versus a RMB0.6m expense, mainly from deferred tax assets on the period loss.

Outlook and guidance

• Malaysia production expansion is ongoing; the Wuhan R&D centre is expected to start operations in 2026, focusing on IoT and AI integration.

• Plans include SaaS-enabled AI scales, modular POS terminals and promotion of AI scales and industrial-grade printers internationally.

• Priorities include deepening Southeast Asia and Middle East cooperation, promoting hazardous-waste products domestically, controlling receivables and optimizing financing costs.