HENGDELI (03389) has issued a profit warning, indicating that the company is expected to record a loss attributable to shareholders of no less than RMB 31 million for the six months ending June 30, 2026.

This marks a significant reversal from the profit attributable to shareholders of approximately RMB 26.308 million recorded in the same period a year earlier, ending June 30, 2025.

According to information currently available, the swing from profit to loss is primarily attributed to a combination of factors, including a decline in sales, an increase in losses from associates, a decrease in bank interest income, a reduction in foreign exchange gains from operating units due to exchange rate fluctuations, and an additional provision for accounts receivable.