HXTL (01085) has issued a positive profit alert, announcing that it expects to record an unaudited net profit attributable to equity shareholders of no more than RMB 10 million for the six months ending June 30, 2026.
This marks a significant turnaround compared to the unaudited net loss attributable to equity shareholders of approximately RMB 70.4 million reported for the same period last year.
The board attributes the shift from loss to profit primarily to improvements in revenue and gross profit margins, alongside a substantial reduction in corporate income tax. The decrease in tax expenses is due to the absence of intra-group dividend distributions that would have been subject to Chinese corporate income tax during the reporting period, whereas such tax liabilities were incurred in the corresponding period of the previous year.
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