Queclink Wireless Solutions anticipates profit decline in first quarter

Queclink Wireless Solutions (SZSE:300590) anticipates a substantial decrease in net profit for the first quarter of 2025, according to their latest financial forecast. The company expects net profit attributable to shareholders to range between CNY8.86 million and CNY12.40 million, representing a 65%-75% decrease compared to the CNY35.44 million reported in the same period last year. The decline is attributed to a roughly 26% year-over-year drop in revenue, which resulted in a corresponding decrease in gross profit of CNY18.84 million. Factors contributing to the revenue decline include a slowdown in deliveries due to escalating US-China trade tensions and evolving customer demands for new products and network infrastructure upgrades in certain countries. Queclink also cites increased spending in sales, administration, and research & development, which rose by CNY7.3 million. The company expects to report approximately CNY3.0 million in non-recurring gains and losses during the quarter, an increase of approximately CNY1.64 million year-over-year.