CHINA CINDA (01359) issued a profit warning, expecting a decrease of approximately 60% to 70% in net profit attributable to shareholders for the interim period compared to the same period last year.

CHINA CINDA (01359) announced that it expects the net profit of the Group for the six-month period ending June 30, 2026, to decline by approximately 20% to 25% compared to the same period in 2025. The net profit attributable to the shareholders of the Company for the six-month period ending June 30, 2026, is expected to decline by approximately 60% to 70% compared to the same period in 2025. The Company believes that the main reasons for the aforementioned changes are: (1) due to changes in deferred income tax expenses and an increase in taxable income for the current period, the income tax expense shifted from a reversal in the first half of 2025 to an accrual in the first half of 2026, resulting in a decline in net profit; (2) in the first half of 2026, Cinda Real Estate is expected to significantly reduce losses year-on-year, and the losses attributable to non-controlling interests are expected to decline significantly year-on-year, leading to a decrease in net profit attributable to the shareholders of the Company. In the first half of 2026, the Company will continue to focus on its core responsibilities and key areas such as the disposal of non-performing assets, providing support for troubled institutions, and corporate restructuring and reorganization, effectively enhancing the quality and efficiency of services for the real economy. The Company will continue to create differentiated competitive advantages, improve resource allocation efficiency, accelerate asset disposal and recovery, strengthen comprehensive risk management, ensure capital adequacy and liquidity safety margins, and maintain overall operational stability while reasonably controlling operating costs to achieve steady growth in pre-tax profit. The Company will resolutely implement the central government's decision-making and deployment, focus on the five major financial initiatives, rely on financial assistance and counter-cyclical adjustment functions, fully play roles in risk prevention and resolution, and service the real economy, unwaveringly pursuing a path of high-quality development for Chinese financial asset management companies.