New Gonow Flags Profit Drop on RV Market Downturn and Expansion Costs

New Gonow Recreational Vehicles, Inc. ( (HK:0805) ) has provided an update.

New Gonow Recreational Vehicles Inc. has warned that its net profit for the year ended 31 December 2025 is expected to fall to between RMB31 million and RMB40 million, down roughly 12% to 32% from RMB45.49 million a year earlier. Management attributes the decline primarily to a downturn in the RV market amid stagflationary pressures and softer discretionary spending, alongside negative margins on a newly launched hybrid model and higher selling expenses from expanding self-operated stores.

The company said the figures are based on a preliminary review of unaudited management accounts and remain subject to adjustment before the formal annual results, which are due by the end of March 2026. The profit pressure underscores the impact of interest rate hikes and competitive pricing on its operations, while its ongoing investment in retail expansion suggests a longer-term strategy that may weigh on near-term earnings but could improve distribution reach and market positioning over time.

The most recent analyst rating on (HK:0805) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on New Gonow Recreational Vehicles, Inc. stock, see the HK:0805 Stock Forecast page.

More about New Gonow Recreational Vehicles, Inc.

New Gonow Recreational Vehicles Inc., incorporated in the Cayman Islands and listed in Hong Kong, operates in the recreational vehicle sector. The group focuses on designing, manufacturing and selling RVs, including new hybrid models, with a market exposure that is sensitive to macroeconomic cycles and discretionary consumer spending patterns.

Average Trading Volume: 4,820,142

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$1.12B

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