SINOHEALTH TECH (02361) has issued a profit warning, announcing expected financial results for the first half of fiscal year 2026.
The company projects that revenue for the six months ending June 30, 2026, will see a moderate increase, estimated to be between approximately RMB 159 million and RMB 165 million. This compares to around RMB 148 million reported for the same period in 2025.
However, net profit for the first half of 2026 is expected to decline significantly, falling to an estimated range of approximately RMB 0.6 million to RMB 6.6 million. This marks a substantial drop from the net profit of approximately RMB 24.5 million recorded in the corresponding period of 2025.
The board attributes the anticipated decline in profit primarily to two factors. The first is the impact of foreign exchange fluctuations, where the depreciation of the Chinese Yuan against the US Dollar during the period has resulted in exchange losses on the company's US dollar-denominated assets. The second factor is an increase in research and development expenditure, which includes hiring more R&D talent and developing an artificial intelligence-driven platform to enhance the company's long-term competitiveness.
Despite the expected profit decline, the company achieved moderate revenue growth for the first half of 2026 compared to the same period last year. SINOHEALTH TECH continued to advance its strategic initiatives during the period, including expanding its innovative data-driven services and developing its AI-driven platform.
The company maintains a robust financial position with ample cash reserves to support its operations and sustainable development. The board believes that the aforementioned factors are transitional in nature and remains confident in the group's long-term growth prospects.
Comments