REDCO HEALTHY (02370) has announced that the group is projected to record a net profit of no more than RMB 2 million for the six months ending June 30, 2026, a significant turnaround from the net loss of approximately RMB 800,000 reported in the same period of the prior year.

The anticipated shift from a loss to a profit is primarily attributed to a substantial reduction in the impairment provisions for trade receivables from both third parties and related parties during the interim period. This positive development was partially offset by a decline in the group's overall revenue and reduced income from value-added services provided to non-property owners, particularly property management services for sales offices and information technology and smart construction services offered to Redco Properties Group (1622), the company's controlling shareholder listed on the Stock Exchange, due to a decrease in the number of projects delivered by the developer.