QIAN XUN TECH (01640) has announced that the group expects to record a loss and total comprehensive expenses attributable to owners of the company of approximately 120 million to 130 million yuan for the first half of 2026, compared to a profit and total comprehensive income attributable to owners of the company of approximately 51.5 million yuan for the same period in 2025.

The board attributed the expected loss primarily to the following factors: The outbreak of the US-Iran war led to rising freight costs and a decline in demand for second-hand electronics; and the new round of the "Purchase Subsidy Implementation Plan" introduced by China's Ministry of Commerce, which took effect on January 1, 2026, narrowed the price gap between second-hand and new electronic products. This caused a significant drop in the unit price of second-hand mobile phones, adversely impacting the group's second-hand e-commerce business.

As a result, the group expects to record revenue of approximately 242 million yuan to 247 million yuan for the interim period, representing a decrease of approximately 61.8% to 62.6% year-on-year. Additionally, the group expects to record a gross loss of approximately 13 million yuan to 17 million yuan, compared to a gross profit of approximately 27.6 million yuan in the same period last year. After reviewing the group's trade receivables, prepayments, and other receivables, the group has recognized an impairment provision of no less than 70 million yuan for the interim period. In comparison, the impairment provision recognized for the year ended December 31, 2025, was approximately 54.7 million yuan.