Bawang Group (01338) has issued a positive profit alert, indicating that the company anticipates recording a modest operating profit of approximately RMB 1 million to RMB 2 million for the first half of 2026. This marks a significant turnaround from the operating loss of roughly RMB 2.3 million reported during the corresponding six-month period ended June 30, 2025.

Although the group experienced a slight decline in revenue, its financial performance for the first half of 2026 has shifted to profitability. This improvement is primarily attributed to reductions in sales costs, including lower packaging material expenses, cost savings generated from electricity produced by the group's rooftop solar photovoltaic panels used in its manufacturing operations, and decreased rental expenses for the group's business premises.

Collectively, these factors have driven an improvement in the group's gross profit for the first half of 2026 compared to the same period last year.