MEDTIDE (03880) has issued an announcement regarding its financial performance for the six months ending June 30, 2026, compared to the same period in 2025. The board anticipates that revenue will range from approximately RMB 229.8 million to RMB 239.2 million, a decrease of about 5.7% to 9.4% year-on-year. Profit is expected to fall between approximately RMB 49.4 million and RMB 57.1 million, representing a year-on-year decline of roughly 44.0% to 51.6%. Additionally, adjusted net profit (a non-IFRS measure) is projected to be between approximately RMB 51.4 million and RMB 59.3 million, a reduction of about 43.1% to 50.6% compared to the prior period.

The primary drivers of these performance changes are a combination of factors. Timing differences in revenue recognition have caused delays in the delivery and recognition of certain customer orders, which are now expected to be recorded in the second half of 2026, leading to a temporary decline in interim revenue. The significant drop in profit is mainly attributed to several factors: the appreciation of the Chinese yuan against the US dollar has resulted in foreign exchange losses on the group's cash, cash equivalents, and trade receivables that are denominated in USD, negatively impacting earnings. A non-recurring gain from the fair value change of a financial liability, which was recorded when the redemption liability was converted into equity upon the company's listing in the first half of 2025, has not recurred in the current period. Furthermore, the decline in sales revenue has led to a reduction in gross profit.

The board has emphasized that these interim fluctuations do not affect the group's core business strength or its long-term development prospects. As the company deepens its collaboration with customers and progresses its pipeline, MEDTIDE successfully secured a large order from an overseas client in July 2026, which has strengthened the group's order backlog.