China Wan Tong Yuan (06966) has issued a positive profit alert, indicating that the company expects to record a profit and total comprehensive income attributable to owners of approximately RMB 1.32 million for the six-month period ended 30 June 2026.

According to the company's announcement, this forecast is based on a preliminary review of the Group's consolidated management accounts for the period (which have not yet been reviewed or audited by independent auditors and/or the company's audit committee). This represents a significant turnaround compared to the loss attributable to owners of approximately RMB 9.39 million recorded for the six-month period ended 30 June 2025.

The anticipated swing to profitability is primarily attributed to several key factors. First, the prior-year period was impacted by additional tax expenses arising from a one-off revaluation of the value-added tax rate, which did not affect the results for the six months ended 30 June 2026. Second, sales demand and volume for cemetery plots have increased, supported by improvements in the macroeconomic environment and a rebound in market demand.

Additionally, the decrease in the fair value of financial assets held at fair value through profit or loss has narrowed, and no significant impairment losses on long-term assets were recorded during the period. Finally, the Group has continued to deepen its three-dimensional strategic approach—focusing on geographic expansion, cost efficiency, and ecosystem development—which has effectively optimised operational management, controlled costs, and enhanced overall gross profit margins.