NEWLINK TECH (09600) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately 27 million to about 37 million yuan, a year-on-year decrease of about 43% to 58%.

NEWLINK TECH (09600) announced that it expects the Group to incur a loss attributable to owners of the Company of approximately RMB 27 million to RMB 37 million for the six months ending June 30, 2026, a significant decrease of about 43% to 58% compared to a loss of RMB 64.4 million attributable to owners of the Company for the six months ended June 30, 2025. The decrease in the loss attributable to owners of the Company is mainly due to the loss from the fair value change of equity investments recognized in profit or loss; reduced R&D expenses; and a net decrease in provisions for expected credit losses on trade receivables, contract assets, and other receivables. During the reporting period, the Group proactively adjusted its business strategy, focusing on optimizing its business structure, actively scaling back low-margin projects with high funding and collection risks, and concentrating resources on high value-added, high cash flow custom solutions, while simultaneously implementing comprehensive cost controls. The Group expects to generate revenue of approximately RMB 80 million to RMB 90 million for the six months ending June 30, 2026, a decrease of about 33% to 40% compared to revenue of RMB 133.7 million for the six months ended June 30, 2025. The decline in the Group's software development service revenue compared to the same period in 2025 is a significant factor leading to the revenue drop, primarily due to the active scaling down of low-margin software development projects by the Group. Despite the temporary decline in revenue during the reporting period, the Group achieved a substantial narrowing of losses, resulting in improved operational performance.