RIDGE OUTDOOR (02720) has issued an announcement projecting that the company's net profit attributable to shareholders for the six months ending June 30, 2026, will be approximately RMB 22.5 million to RMB 23.3 million. This represents a decrease of between 42.2% and 44.2% compared to the net profit attributable to shareholders of approximately RMB 40.3 million for the same period in 2025.

Based on currently available information, the anticipated decline in the company's net profit attributable to shareholders for the reporting period is primarily due to the following factors: (i) In the first half of 2026, amid increasing global political uncertainty and intensifying geopolitical conflicts in Europe, the Middle East, and other regions, global inflation rates rose significantly, impacting consumer purchasing power. Combined with increased transportation costs and longer shipping times, the order placement cycle for original equipment manufacturer (OEM) customers has lengthened. Particularly in Europe, the Group's largest revenue source, consumer confidence weakened notably starting from February 2026, hit a trough in April, and only recovered to near 2025 levels by July. As a result, the Group's total revenue for the first half of 2026 decreased. (ii) Due to exchange rate fluctuations, the Company incurred foreign exchange losses in the first half of 2026, whereas it recorded foreign exchange gains in the same period of 2025, negatively impacting net profit for the current period. (iii) During the reporting period, the prices of core bulk raw materials rose periodically; for example, the price of aluminum on the London Metal Exchange (LME) increased by over 20% year-on-year, directly raising unit production costs and further compressing gross margins. However, thanks to the growth of the original brand manufacturer (OBM) business and changes in product mix, the Group's gross margin remained largely flat compared to the same period last year. (iv) The Company's continued investment in OEM business promotion and OBM competitiveness building has further increased selling and administrative expenses, exerting a certain negative impact on the overall net profit level.