WELLCELL HOLD (02477) issues profit warning, expecting a mid-term net loss attributable to shareholders not exceeding approximately 45 million yuan, turning from profit to loss year-on-year.

WELLCELL HOLD (02477) announced that the Group expects to incur a net loss attributable to the owners of the Company of no more than approximately RMB 45 million for the six months ending on June 30, 2026 (the reporting period), compared to a net profit attributable to the owners of the Company of approximately RMB 7.717 million for the same period in 2025. The Group anticipates this net loss primarily due to: (i) fair value losses on financial assets measured at fair value through profit or loss; (ii) losses in the Group's telecommunications business during the period due to market saturation, increased industry competition, and rising operational costs, while the same period in 2025 recorded a profit; and (iii) the launch of financial technology operations in the second half of last year and the initiation of an artificial intelligence (AI) strategy upgrade during the reporting period to expand its business into the AI infrastructure computing services sector, which has led to increased employee benefits expenses and other operating costs.