Huacong Saige: It is expected that the net profit will be a loss of 97-120 million yuan in 2025, turning a loss year-on-year.

Huakong Saige announced that it is expected to incur a net loss of 97 to 120 million yuan in 2025, with a profit of 17.0347 million yuan in the same period last year. The decrease in net profit attributable to the parent company during the reporting period is mainly due to a dispute arising from the "Qitaihe City Lithium-ion Battery Cathode Material Project Investment Contract" signed between a subsidiary and the People's Government of Xinxing District, Qitaihe City, Heilongjiang Province in the first half of 2025. In combination with the professional advice of legal advisors, the company has conservatively recognized an estimated liability of 50 million yuan and a loss of 50 million yuan based on the potential arbitration results and potential loss amounts. In addition, in 2024, the company's assessment of the 20.25% equity of Tongfang Environment accounted for 116 million yuan, increasing the total profit by 116 million yuan. There are no similar items for this period.