Ruichang International Holdings (01334) is expected to achieve net profit of not less than 10.3 million yuan in 2024, a year-on-year decrease of about 81.3%

According to the Zhitong Finance App, Ruichang International Holdings (01334) announced that the Group expects to obtain a net profit of not less than RMB 10.3 million for the year ended December 31, 2024 (this year), while net profit of about RMB 55.2 million for the year ended December 31, 2023, is equivalent to a net profit reduction of about 81.3%.

According to the announcement, the projected decline in net profit for this year is mainly due to (i) the decline in sales of the Group's products due to the decline in demand in the downstream market and the slowdown in capital investment in the petroleum refining and petrochemical industry, which led to a decline in sales of the Group's products, which led to a decline in the Group's total revenue and gross profit for the current year; (ii) a decrease in gross margin due to increased market competition; and (iii) an increase in sales and administrative expenses.