ZONQING LTD (01855) has issued a profit warning, forecasting a net loss after tax of between approximately RMB 5 million and RMB 20 million for the six months ending June 30, 2026.

This contrasts sharply with the net profit after tax of about RMB 36.3 million recorded in the same period in 2025. The company attributed the anticipated loss primarily to a decline in revenue.

Revenue fell as major projects entered their final completion stages, reducing income recognition during the reporting period. Additionally, new contracts are still in early implementation phases and have not yet generated revenue. The combination of lower revenue and costs that have not declined at the same rate has compressed the group's gross profit and gross profit margin.

As a result of these dual pressures, the company expects its top line to drop while expenses remain relatively stable, leading to the projected net loss for the first half of the financial year.