Shuangdeng Co., Ltd. (06960) is expected to lose about 20 million yuan to 30 million yuan in the first half of the year

According to the Zhitong Finance App, Shuangdeng Co., Ltd. (06960) announced that the Group is expected to have a period loss of about RMB 20 million to RMB 30 million for the six months ending June 30, 2026, and an in-term profit of about RMB 160 million for the six months ending June 30, 2025.

The board of directors believes that the main reasons for the shift in performance from profit to loss during the period include: (1) the company has further sorted out and carefully assessed a number of historical tax matters, and is expected to pay about RMB 80 million in related taxes and expenses, which will have a significant impact on profits during the period; (2) due to fluctuations in the exchange rate of RMB against related foreign currencies, the Group experienced exchange losses of about RMB 56 million during the period; (3) export tax rebate policy adjustments, the phased increase in prices of some major raw materials and an increase in R&D investment, which also had a certain impact on profits during the period.

Among the above factors, the impact of historical tax matters and exchange losses on profits during the period was concentrated. The board of directors believes that as of the date of this announcement, the Group's production and operation are normal, on-going orders and delivery of key projects are progressing according to plan, the prices of major raw materials are generally stabilizing, and the positive impact of the continuous increase in R&D investment on the Group's long-term profitability is gradually showing.