CARLINK TECH (02531) issues a profit warning, expecting a mid-term loss of approximately 42 million to 45 million yuan.

CARLINK TECH (02531) announced that the Group expects to achieve, for the six months ending June 30, 2026: (i) revenue of approximately RMB 240 million to RMB 250 million, a decrease of about 17% to 20% compared to the revenue for the six months ending June 30, 2025; (ii) a loss of approximately RMB 42 million to RMB 45 million for the period, a decrease of about 321% to 336% compared to the profit attributable to the equity shareholders of the Company for the six months ending June 30, 2025. The Board believes that the anticipated decrease in profit attributable to the equity shareholders of the Company for the current period is mainly due to: (i) a reduction in the Group's revenue, primarily as a result of a fiercely competitive market environment during the period and a decline in new car sales, leading to a decrease in revenue from the Group's existing business; (ii) an increase in the Group's cost of sales due to heightened marketing, channel expansion, and increased R&D investment to respond to the continued pressure of the macro environment; (iii) an increase in the provision for bad debts in accounts receivable, as clients' overall financial arrangements become more prudent, resulting in delayed payment cycles. Due to the combined impact of the aforementioned decrease in revenue and increase in cost of sales, it is expected that the profit attributable to the equity shareholders of the Company for the current period will be lower than that for the same period in 2025.