China Tianrui Automotive Interiors Co., Ltd Issues Profit Warning for FY2025

Key Highlights

• Profit Warning Announced: China Tianrui Automotive Interiors Co., Ltd (“the Company”) has issued a profit warning, disclosing that it expects to record a net loss of not more than RMB7.0 million for the financial year ended 31 December 2025.
• Sharp Turnaround from Previous Year: This anticipated loss contrasts sharply with the net profit of approximately RMB2.0 million recorded for the year ended 31 December 2024.
• Primary Reason – Surge in R&D Costs: The Board attributes this turnaround primarily to a significant increase in research and development expenses, which rose by approximately RMB6 million year-on-year.
• Preliminary Assessment: The figures are based on the Group’s unaudited consolidated management accounts for the year ended 31 December 2025 and other currently available information. The results have not yet been audited or reviewed by the Company’s audit committee and are subject to final adjustments.
• Disclosure Timeline: The Company expects to publish its annual results announcement for the year ended 31 December 2025 on 30 March 2026.

Details for Shareholders and Investors

Potential Impact on Share Price:
The Company’s announcement of a swing from profit to loss is a material event that could significantly affect investor sentiment and the Company’s share price. The main driver for this negative result is a substantial increase in research and development expenditure, reflecting management’s strategic decision to invest in future product and technology development. While such spending may benefit the Company in the long term, it has materially impacted profitability for the current reporting period.

Financial Position and Outlook:
The unaudited results indicate a net loss not exceeding RMB7.0 million for FY2025, from a profit of around RMB2.0 million in FY2024. This reversal is directly linked to approximately RMB6 million more incurred in R&D costs in 2025 compared to the previous year. Investors should note that increased R&D spending may signal future product launches or technological advancements but can also pressure near-term margins.

Uncertainties and Further Announcements:
The Company emphasizes that the information is provisional and subject to change pending audit and review. The final figures may differ from the current estimates, and shareholders are advised to monitor the upcoming audited financial statements expected by 30 March 2026.

Board Composition

As of the announcement date, the Board comprises:

• Two Executive Directors: Ms. Zhang Jingrong and Mr. Zou Weidong.
• Three Independent Non-Executive Directors: Mr. Zhu Hongqiang, Mr. Zhou Genshu, and Mr. Chen Geng.

Cautionary Note

Important Notice for Investors: The Company advises shareholders and potential investors to exercise caution in dealing in the Company’s shares, given the potential for share price volatility following this announcement.

Disclaimer: The information provided above is based on the unaudited management accounts and preliminary assessments by the Board of China Tianrui Automotive Interiors Co., Ltd. Actual financial results may differ after audit and formal board review. Investors are advised to exercise caution and seek professional advice where appropriate.

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