BEIDA JADE BIRD (08095) has issued a profit warning, expecting mid-term profits to be no less than 65 million yuan, marking a year-on-year turnaround to profitability.

BEIDA JADE BIRD (08095) announced that the Group expects to achieve a profit of no less than RMB 65 million for the six months ended June 30, 2026, compared to a restated loss of approximately RMB 10.2 million for the six months ended June 30, 2025 (the restatement is due to the embezzlement by a cashier of one of the Company's subsidiaries during transactions that occurred from January 2024 to May 2025, the details of which are included in the Company's annual report for the year ended December 31, 2025. These transactions should have been recorded in the Company's consolidated financial statements for the year ended December 31, 2024, but were recorded in the consolidated financial statements for the six months ended June 30, 2025). The expected turnaround from loss to profit is primarily due to the combined effects of the following factors: (i) for the six months ended June 30, 2026, a reversal of previously recognized impairment losses of approximately RMB 71.2 million on trade and other receivables due to the recovery and sale of unpaid amounts related to a former subsidiary of the Company during the review period, whereas there was no such reversal for the six months ended June 30, 2025; (ii) for the six months ended June 30, 2025, an income tax credit of approximately RMB 22.2 million was obtained, primarily due to an overprovision for corporate income tax by one of the Company's subsidiaries in the same period, and there was no such overprovision for the six months ended June 30, 2026; (iii) for the six months ended June 30, 2025, there was a loss of approximately RMB 22.1 million from the partial sale of an associate, which was related to the Company's partial divestment of its associate Qing Niao Smart Control Technology Co., Ltd. (formerly known as Qing Niao Fire-Fighting Co., Ltd.), authorized by shareholders in 2025, whereas there was no such loss for the six months ended June 30, 2026; (iv) for the six months ended June 30, 2025, a loss of approximately RMB 16.1 million was incurred from the sale of a joint venture that was not engaged in any active business, following the Groups dissolution of a non-material joint venture, whereas there was no such loss for the six months ended June 30, 2026.