YICHEN IND (01596) has issued a profit warning, forecasting a significant decline in its financial performance for the first half of 2026.

Based on a preliminary assessment of the group's unaudited consolidated management accounts for the six months ending June 30, 2026, and information currently available to the board, the company expects to record a consolidated net profit of approximately RMB 13.2 million for the period. This represents a decrease of roughly RMB 35.5 million, or about 72.9%, compared to the consolidated net profit of approximately RMB 48.7 million reported for the six months ended June 30, 2025.

The board attributes the decline in financial performance primarily to the impact of railway project construction schedules and changes in product mix. This has led to a decrease in sales revenue from the group's railway fastening system products, resulting in a total reduction in product gross profit of approximately RMB 42.6 million for the six months ending June 30, 2026.