ZHENGTONGAUTO (01728) issued a profit warning, expecting a mid-term net loss to increase by approximately 17% year-on-year.

ZHENGTONGAUTO (01728) announced that, based on a preliminary assessment of the Group's unaudited consolidated management accounts for the six months ending June 30, 2026, and the information currently available to the Board, it is expected that the Group will record a net loss for the six months ending June 30, 2026, which is approximately 17% greater than the restated comparative figures for 2025. This increase in net loss is mainly due to factors such as a decrease in new car sales and a reduction in mortgage commission rates. Due to the application of consolidation accounting principles, the comparative figures for the six months ending June 30, 2025, are expected to be restated, as the acquisition of 100% equity in Xiamen Xinde Co Ltd., Guomao Automobile Group Co., Ltd., and Guomao Automobile (Thailand) Co., Ltd. (both consolidated under common control) occurred at the beginning of the earliest period presented (restated comparative figures for 2025). Based on the long-term strategic support from the Group's controlling shareholder Xiamen ITG Group Corp., Ltd., and the assessment of the Group's unaudited consolidated management accounts for the six months ending June 30, 2026, the Board believes that the Group can adapt to industry changes and continue its operational development.