Shuangdeng Group Co., Ltd. issued a profit warning for the six months ended 30 June 2026, projecting a net loss of roughly RMB20.00 million to RMB30.00 million. The company reported a net profit of about RMB160.00 million in the comparable period of 2025, implying a year-on-year swing of around RMB180.00 million to RMB190.00 million.
Management attributed the deterioration to three primary factors:
1. Historical tax matters: A prudent reassessment prompted an estimated RMB80.00 million provision, materially eroding interim profitability.
2. Foreign-exchange impact: Renminbi volatility against major currencies generated approximately RMB56.00 million in exchange losses.
3. Operating cost pressures: Adjustments in export tax-rebate policies, higher prices of certain key raw materials, and increased research and development spending further compressed margins.
The board noted that production, order fulfilment and key project deliveries remain on schedule, while raw-material prices have generally stabilised and R&D investment is expected to enhance long-term earnings capacity.
Interim results are still being finalised and have neither been audited nor reviewed by external auditors. The official six-month financial statement is slated for release by end-August 2026. Shareholders and potential investors are advised to exercise caution when trading the company’s securities.
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