JST GROUP (06687) has released an announcement. The Group is expected to record a profit attributable to equity holders of the company of between approximately RMB 100 million and RMB 130 million for the six months ending June 30, 2026, compared to a loss attributable to equity holders of the company of approximately RMB 41 million for the six months ending June 30, 2025. This represents a shift from a net loss to a net profit compared to the six months ending June 30, 2025.
The Group is also expected to record an adjusted net profit (prepared based on non-IFRS measures) of between approximately RMB 170 million and RMB 200 million for the six months ending June 30, 2026, representing an increase of approximately 227% to 285% from the adjusted net profit of approximately RMB 52 million for the six months ending June 30, 2025.
Why present the adjusted net profit?
The board believes that presenting the adjusted net profit (a non-IFRS measure) will be beneficial for comparing operating performance across different periods and with other comparable companies in similar businesses by eliminating the potential impact of certain items.
What is the definition of adjusted net profit?
The board defines adjusted net profit (a non-IFRS measure) as the net profit/(loss) for the period after adding back the following items: (i) foreign exchange losses; (ii) share-based payments to employees; (iii) losses on convertible redeemable preferred shares; (iv) listing expenses related to the company's share listing on the Hong Kong Stock Exchange on October 21, 2025; and (v) fair value losses/(gains) on unlisted equity investments. The adjusted net profit for historical periods has been recalculated using the same calculation method to ensure consistency and comparability across periods.
What drives the profit growth?
The profit growth is mainly attributable to steady revenue growth, an increase in gross profit margin, and improved operational efficiency.
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