HILONG (01623) has issued a positive profit alert, indicating a significant turnaround in its financial performance.

According to a company announcement, for the six months ending June 30, 2026 (the reporting period), the group expects to record a net profit of approximately RMB 35 million to RMB 55 million. This marks a sharp reversal from the net loss of approximately RMB 324.9 million reported for the same period in 2025.

The shift from loss to profit is mainly attributed to two factors. First, revenue from the oil country tubular goods (OCTG) trading business and integrated drilling and completion technical services under the oilfield services segment increased during the reporting period compared to the same period in 2025. Second, the company did not incur the one-off impairment loss that was recorded in 2025.

For the six months ended June 30, 2025, the group recognised an impairment loss of RMB 329.3 million on a vessel. As that vessel was sold by the end of 2025, no such impairment or classification impact was generated during the current reporting period.