MING YUAN CLOUD (00909) has issued a profit warning, stating that it expects to record a net profit attributable to owners of the company of no more than RMB 1.5 million for the six months ending June 30, 2026. This compares to a net profit of approximately RMB 13.75 million in the same period last year.
The board believes the expected decline in profitability is primarily due to changes in the external macroeconomic environment and factors related to non-core businesses. Specifically, the decrease in the U.S. dollar market interest rate compared to the same period last year has reduced the income from the group's U.S. dollar-denominated time deposits, leading to a decline in financial income from cash assets. Additionally, the narrower appreciation of the U.S. dollar against the Hong Kong dollar during the reporting period has resulted in lower foreign exchange gains compared to the previous year.
The company emphasized that these factors stem from normal fluctuations in global exchange and interest rate markets, not from the operations of its core business. Despite the anticipated profit decline, the group remains confident in its long-term prospects.
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