NEUTECH GROUP (09616) issues profit warning, expecting a decrease of approximately 20%-30% in mid-term net profit attributable to shareholders.

NEUTECH GROUP (09616) announced that it is expected to achieve the following results for the six months ending June 30, 2025: a decrease of approximately 20%-30% in profit attributable to owners of the company compared to the same period ending June 30, 2024; and a decrease of approximately 20%-30% in adjusted net profit attributable to owners of the company compared to the same period ending June 30, 2024. The Board of Directors believes that the decrease in profit attributable to owners of the company and adjusted net profit attributable to owners is mainly due to the following reasons: (i) an increase in costs and expenses, mainly because the group completed the acquisition of Dongsoft Health Medical Management Co., Ltd. (Dongsoft Health Medical) on May 31, 2024, as part of its strategy to develop an integrated business ecosystem for education, healthcare, wellness, and travel; and the group increased investment in other healthcare-related businesses to promote strategic transformation and upgrading; (ii) delays in the delivery of educational technology products leading to a decrease in revenue from education resource export business; and a decrease in revenue from continuing education services due to a decrease in student enrollment caused by market changes.