The YAN PALACE (01497) group has announced a positive profit forecast. For the six-month period ending June 30, 2026, the company expects to achieve revenues in the range of approximately 1.167 billion to 1.217 billion yuan.

This represents a projected increase of up to 15% to 20% compared to the revenue recorded in the corresponding period of 2025.

Furthermore, the group anticipates a net profit for the 2026 interim period between approximately 1.05 billion and 1.16 billion yuan.

This forecasted net profit indicates significant growth, estimated at 35% to 50% higher than the net profit achieved in the same period last year.

The board of directors attributes this expected surge in net profit to several key factors.

Firstly, the company has strategically focused on its core product categories in response to the current economic climate and market conditions.

This focus, coupled with efforts to expand consumption scenarios and enrich the product portfolio, has driven simultaneous revenue growth across both online and offline sales channels.

Secondly, enhancements in production efficiency have been realized through the intelligent manufacturing upgrades and process iteration improvements at the company's bird's nest smart factory.

These operational advancements have effectively optimized the cost structure, leading to an improvement in gross profit margins.

Lastly, a contributing factor is the absence of a goodwill impairment charge in the current period.

In June 2025, the company applied a valuation model to assess certain cash-generating units and recorded a corresponding impairment loss.

An assessment using the same model in June 2026 did not result in any impairment loss being recognized for the corresponding units.