LOGORY (02482) issued a profit warning, expecting a mid-term net loss of about 20.3 million yuan, a loss compared to a profit in the same period last year.

LOGORY (02482) announced that it expects the Group to incur an unaudited net loss of approximately RMB 20.3 million for the six months ending June 30, 2026 (the Reporting Period), compared to an unaudited net profit of approximately RMB 26.1 million for the six months ending June 30, 2025. The main reasons for the expected decrease in profit are as follows: (i) In light of the current economic situation and industry conditions, the Group is continuously adjusting its business structure to improve quality and efficiency, reducing the scale of the digital freight business, which has a high operational capital requirement and a low gross profit margin, while focusing on the development of new businesses such as data services to achieve scale growth and enhance the overall gross profit margin. During the Reporting Period, the gross profit contributed by new businesses was not enough to offset the gross profit gap caused by the decline in the scale of the digital freight business, leading to an overall decline in gross profit. (ii) The Group continues to invest in the research and development of AI applications and digital solutions, while significantly increasing the investment of sales resources in data services and digital businesses, driving the adjustment of the business structure towards higher gross profit margins. These strategic investments have kept research and development and sales expenses at a level necessary to support the required business structure adjustments.