Sinohealth Technology issues profit warning: 1H2026 net profit projected to plunge 73%–98% despite revenue growth

Bulletin Express07-29

Sinohealth Technology Holdings Limited (Sinohealth Technology) has released a profit warning for the six months ended 30 June 2026 (1H2026), citing foreign-exchange losses and higher research-and-development (R&D) spending as the main headwinds.

Preliminary unaudited figures indicate that revenue will rise to approximately RMB158.50 million–RMB164.50 million, up 7.20%–11.20% from RMB147.90 million recorded in the same period of 2025.

In contrast, net profit is expected to contract sharply to around RMB0.60 million–RMB6.60 million, down 73.06%–97.55% from RMB24.50 million in 1H2025. Management attributes the earnings decline to: 1) Exchange losses stemming from the depreciation of the US dollar against the renminbi, which eroded the value of the Group’s USD-denominated assets; and 2) Increased investment in R&D, including additional talent recruitment and development of AI-powered platforms aimed at strengthening long-term competitiveness.

The Board highlighted continued progress in expanding innovative data-driven businesses and reaffirmed the Group’s healthy cash position to support ongoing strategic initiatives.

These figures are based on management accounts that have not yet been audited or reviewed by the Company’s audit committee. Sinohealth Technology plans to publish its interim results by the end of August 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities.

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