HXTL (01085) announces a profit alert, expecting that the net profit attributable to shareholders in the first half of the year will not exceed 10 million yuan.

Hengxin Technology (01085) announced that it expects to record an unaudited net profit attributable to equity shareholders of no more than RMB 10 million for the six months ending June 30, 2026. In comparison, the company incurred an unaudited net loss attributable to equity shareholders of approximately RMB 70.4 million for the same period last year. The Board believes that the unaudited net profit attributable to equity shareholders for this reporting period has changed from a loss to a profit compared to the same period last year, primarily due to improvements in revenue and gross profit margin, as well as a significant reduction in corporate income tax. This tax reduction is attributed to the absence of dividends from inter-company transactions that would necessitate the payment of Chinese corporate income tax during this reporting period, whereas such taxes were incurred in the same period last year.