AUGROUP (02519) has issued a profit warning, projecting a significant drop in its interim financial results.

According to the company's announcement, based on a preliminary review of its unaudited consolidated management accounts and other available information, AUGROUP expects its net profit attributable to the parent company for the six months ending June 30, 2026, to range between RMB 27.15 million and RMB 47.15 million. This represents a decline of between 56.3% and 74.8% compared to the same period in 2025.

The expected decrease is primarily attributed to several combined factors. Firstly, in its logistics service solutions segment, the company began expanding its self-delivery business in the second half of 2025, which has continued to incur losses through the end of the reporting period. Secondly, the company's own factories are still in a ramp-up phase with insufficient capacity utilization, and the sales revenue from existing orders is unable to cover the fixed costs and other operating expenses of the factory operations. Finally, during the reporting period, the group incurred significant foreign exchange losses due to fluctuations in foreign currency exchange rates.