Shanghai Zhida Technology Development Co., Ltd. (ZHIDA TECH) expects to post a consolidated loss attributable to owners of not more than RMB120.00 million for the six months ended 30 June 2026, compared with a RMB30.00 million loss in the prior-year period. The projected figure implies a potential four-fold year-on-year deterioration.

Management attributes the deeper loss to three concurrent pressures:

1. Revenue contraction and a lower gross profit margin amid intensified market competition. 2. Rising raw-material costs eroding profitability. 3. Higher selling expenses stemming from an aggressive sales strategy adopted to protect market share.

The interim results are still being finalised; the disclosed figures are based on unaudited management accounts and may be adjusted. The company plans to publish its full interim financial report before the end of August 2026.

ZHIDA TECH advises shareholders and potential investors to exercise caution when trading the company’s shares in light of the anticipated loss.