HAIWEI ELEC (09609) issued a profit warning, expecting the company's profit attributable to owners for the first half of the year to be approximately 3.6 million to 7.4 million yuan, representing a year-on-year decrease of about 80% to 90%.

HAIWEI ELEC (09609) announced that the group expects to achieve a profit attributable to equity holders of approximately HKD 3.6 million to HKD 7.4 million in the first half of 2026, representing a year-on-year decrease of approximately 80.0% to 90.0%. The board believes that the decrease in profit attributable to equity holders is primarily due to: a projected year-on-year decrease in gross profit of approximately HKD 19.9 million to HKD 23.7 million during the expected period, mainly due to intensified domestic market competition leading to a decline in the average selling price of the groups main products, thereby exerting pressure on the groups overall profitability; and an expected increase in foreign exchange losses of approximately HKD 12.5 million to HKD 13.5 million, primarily due to the appreciation of the Renminbi against the Hong Kong dollar and the conversion of funds received from the groups initial public offering. Despite these challenges, based on the information currently available to the board, the group expects a slight increase in sales volume of its core capacitor film products for the six months ending June 30, 2026, compared to the same period in 2025, and selling prices have shown signs of recovery since May 2026. The sales performance and price recovery reflect the resilience of the company's products and their recognition in the market amidst short-term industry fluctuations.