CARLINK TECH (02531) has issued a profit warning, indicating that the group anticipates recording a net loss of approximately RMB 42 million to RMB 45 million for the six months ending June 30, 2026.

The company’s announcement reveals that revenue for the period is projected to fall to around RMB 240 million to RMB 250 million, reflecting a decline of roughly 17% to 20% compared to the same period in 2025. Additionally, the expected loss marks a significant swing from the profit attributable to equity shareholders of approximately RMB 321 million to RMB 336 million recorded in the prior corresponding period.

The board attributes the anticipated decrease in profit to several key factors. Primarily, the group's revenue has been impacted by intense market competition and a downturn in new vehicle sales, which have weighed on the performance of its existing business operations.

Furthermore, the group's cost of sales has risen as a result of increased spending on market promotion, channel development, and research and development initiatives, undertaken to navigate a persistently challenging macroeconomic environment.

Additionally, given that customers have adopted more cautious overall capital management strategies, the collection cycle has been extended, leading to higher provisions for bad debts on accounts receivable. The combined effect of reduced revenue and increased cost of sales is expected to result in a substantial decline in profit attributable to equity shareholders compared to the same period in 2025.