MOKINGRAN (02585) announced its financial projections for 2025. The Group expects to achieve revenue between approximately RMB 19.72 billion and RMB 22.77 billion, representing an increase of 0% to 16% compared to the previous year. Overseas revenue is projected to be in the range of approximately RMB 307 million to RMB 374 million, marking a significant increase of about 119% to 167%. Net profit is forecasted to be between approximately RMB 91 million and RMB 111 million, indicating a decrease of about 45% to 55%. Profit attributable to the company's owners is expected to be between RMB 77 million and RMB 94 million, reflecting a reduction of approximately 50% to 59%.

The increase in the Group's total revenue and overseas revenue for 2025 is primarily attributed to the continuous improvement of its overseas operations and the successful expansion into regional markets, which have collectively driven steady growth in business scale and income.

The decrease in profit is mainly due to losses recorded from the Group's Au (T+D) contracts and gold leasing activities. The combined loss from these activities for 2025 is expected to be between RMB 898 million and RMB 1.097 billion, an increase of approximately 43% to 75% compared to the previous year. The Group enters into Au (T+D) contracts solely to hedge against risks associated with gold price fluctuations. As gold prices continued to rise throughout 2025, these contracts and gold leasing arrangements resulted in losses, which were immediately reflected under the "net other income and losses" item in the company's consolidated statement of profit or loss and other comprehensive income.

However, the benefits arising from the increase in gold prices are generally only reflected when products are sold. The unrealized gains on the increased value of unsold inventory have not yet been recognized. When the company sells products at prevailing market prices, the increased profit generated from these sales, due to the higher gold prices, will offset the adverse impact of the losses from the Au (T+D) contracts and gold leasing on the net profit.

Although Au (T+D) contracts and gold leasing generated losses in the first half of 2025, the Group's net profit situation shifted as it sold products at market prices. The net profit (loss) transformed from a loss of RMB 64 million for the six months ended June 30, 2025, to a full-year net profit projection of approximately RMB 91 million to RMB 111 million for the entire 2025 fiscal year.