CREALITY (03388) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately 53 million to 63 million yuan, a year-on-year shift from profit to loss.

CREALITY (03388) announced that the Group expects to record a loss attributable to the owners of the Company of approximately RMB 53 million to RMB 63 million in the first half of 2026, compared to a profit of approximately RMB 107 million attributable to the owners of the Company in the same period of 2025. To supplement the financial information presented in accordance with International Financial Reporting Standards (IFRS), the Group anticipates an adjusted net loss (non-IFRS measure) of approximately RMB 10 million to RMB 20 million in the first half of 2026. The Board of Directors believes that the Group's financial performance will shift from profit to loss in the first half of 2026 primarily due to (i) increased promotional efforts and price discounts to expand its coverage in overseas markets, combined with inventory clearance related to product optimization and upgrades, which have collectively resulted in a decrease in gross profit margin; (ii) the Group's expansion of its online direct sales business, as well as strengthening brand marketing and promotional activities through offline channels to broaden its customer base, leading to increased marketing and advertising expenses (including payments to third-party e-commerce platforms, offline stores, and channel partners for promotion fees); (iii) increased investment in technology research and development projects and expansion of its R&D team, resulting in higher personnel and material costs, thereby increasing R&D expenses; and (iv) in the first half of 2026, fluctuations in exchange rates due to the continuous appreciation of the RMB against the US dollar have led to foreign exchange losses.