AOWEI HOLDING (01370) has issued a statement indicating that for the six months ending June 30, 2026, it expects to record a loss attributable to equity holders of the company of no more than approximately RMB 20 million. This compares with a loss of RMB 75.6 million in the same period last year, reflecting an anticipated year-on-year reduction in losses of about 73.5%.

The narrowed loss for the reporting period is primarily attributed to three factors. First, the sales price of iron ore concentrate increased during the period, while the group continued to strengthen cost control measures, reducing expenses on raw material procurement and transportation, which led to a rise in gross profit margin. Second, the sand and gravel aggregate business of Laixian Jiheng Mining Co., Ltd. is gradually recovering, with increased production and sales volumes over the past six months. Third, the impairment loss under the group's expected credit loss model (net of reversals) shifted from a substantial provision in the same period last year to a reversal in the current period.