MICROPORT (00853) issues a profit warning, expecting to incur a net loss for the interim period.

MICROPORT (00853) announced that the Groups performance for the six months ending June 30, 2026, is expected as follows: The Group's revenue from continuing operations is anticipated to grow by approximately 12% to 14% year-on-year, with particularly strong contributions from overseas operations, which continue to experience about 140% growth; the profitability of the Group at the operational level is steadily improving, with the gross margin of continuing operations expected to increase by approximately 3 to 4 percentage points year-on-year, while continuing to advance refined operations and cost control. During this period, the continuing operations are expected to achieve an operational net profit of no less than $24 million (for the six months ending June 30, 2025, the continuing operations recorded an operational net loss of $413 million); however, due to financial costs of approximately $43 million incurred during the period, as well as foreign exchange fluctuations, fair value reassessment of convertible loans, and one-time losses arising from several asset impairments and transaction matters, the Group anticipates a net loss from continuing operations during the period not exceeding $50 million (for the six months ending June 30, 2025, the continuing operations experienced a net loss of $49 million). As of the date of this announcement, the Company has obtained a waiver related to the financial covenants applicable during the period under the relevant agreements for the convertible loans concerning the expected net loss. In the future, the Group will continue to uphold the "Focus on Core" strategy and seek mutually beneficial strategic solutions for its non-core/loss-making businesses, while appropriately arranging and continuously optimizing the Group's debt conditions and structure to further improve the Group's operational status and financial performance.