REDCO HEALTHY (02370) announces a positive profit alert, expecting a mid-term net profit not to exceed 2 million yuan, turning a profit compared to the same period last year.

REDCO HEALTHY (02370) announced that it expects the group to record a net profit of no more than RMB 2 million for the six months ending June 30, 2026, compared to a net loss of approximately RMB 800,000 for the six months ending June 30, 2025. The decrease in net profit is primarily due to the following reasons: The transition from a net loss to net profit is mainly attributed to a substantial reduction in the impairment loss provision for trade receivables from third parties and related parties during the six months ending June 30, 2026, which was partially offset by a decrease in the group's overall revenue and a decline in revenue from value-added services provided to non-owners (especially the property services and information technology and smart construction services provided to Likao Real Estate Group Co., Ltd. ("Likao Real Estate," the company's controlling shareholder, whose shares are listed on the Stock Exchange (stock code: 1622))) due to a reduction in projects delivered by Likao Real Estate.