Beijing Health (Holdings) Limited (BJ Health) disclosed a profit warning, indicating a sharp deterioration in the medical and elderly care products sales segment for the six months ended 30 June 2026.

Segment performance • Revenue fell to approximately RMB19.50 million, a year-on-year decline of about 70%. • The segment reversed from a RMB2.00 million profit in the prior-year period to an estimated loss of RMB15.60 million.

Key factors behind the downturn 1. Escalating price competition in the business-to-business furniture market for education, medical and elderly care institutions has compressed project gross margins. 2. A higher proportion of low-margin projects exerted an additional negative impact of roughly RMB2.40 million on profitability. 3. Customer-driven postponements in delivery and acceptance of major university contracts deferred recognition of about RMB12.00 million in expected profit to future periods.

Operational response To stabilise earnings and cash flow in the second half of 2026, BJ Health plans to: • Tighten expense controls through a tiered salary adjustment, office lease optimisation and an intended 15% workforce reduction by 2027. • Target higher-margin orders in core markets—universities, medical institutions and elderly care facilities—while expanding distribution channels and advancing localised production of high-value products with partner KI. • Enhance risk management by accelerating trade receivables collection, prioritising projects with stronger margins and lower credit risk, and instituting stricter budget controls.

Outlook Performance data from BJ Health’s other business segments are still under consolidation. The board has not confirmed whether contributions from these segments will offset the medical and elderly care segment’s anticipated loss. Final interim results remain subject to further verification.

Investors are advised to exercise caution when dealing in BJ Health shares until the audited interim results are released.