RUIFENG RENEW (00527) issued a profit warning, expecting a consolidated net loss of not less than approximately 700 million yuan for the interim period.

RUIFENG RENEW (00527) announced that the group expects to incur a consolidated net loss of not less than approximately RMB 700 million for the six months ending June 30, 2026, compared to a consolidated net loss of approximately RMB 40.357 million for the same period in 2025. The Board of Directors believes that the anticipated increase in net loss for the current period is primarily due to share-based payment expenses of about RMB 692 million resulting from the issuance of subscription shares and the 2026 HKD convertible bonds, which are accounted for at fair value at the time of completion. These expenses relate to identifiable service elements associated with the subscription shares and the 2026 HKD convertible bonds and arise from the difference between the fair value on the grant date of the subscription shares and the 2026 HKD convertible bonds and the cash proceeds received in relation to them. This is mainly due to the closing price of the shares on the grant date in 2026 being HKD 0.72 per share, significantly higher than the subscription price B and the HKD conversion price of HKD 0.196 per share specified in the subscription agreement dated June 21, 2024.