SDITC (01697) has issued a profit warning, projecting a net loss of approximately RMB 119 million for the six months ending June 30, 2026, a stark reversal from the net profit of RMB 167 million recorded in the same period last year.

The board attributes this anticipated swing from profit to loss primarily to fair value losses incurred on financial assets measured at fair value through profit or loss—mainly certain securities investments—during the reporting period. These losses are unrealized in nature and represent non-cash items, meaning they will not affect the company's operating cash flows.

Compared with the corresponding period in 2025, the expected downturn stems from these mark-to-market adjustments, which, while impacting the income statement, do not reflect any change in the underlying operational cash generation of the business.