GUANZE MEDICAL (02427) issues a profit warning, expecting a mid-term loss attributable to shareholders of no more than 45 million yuan.

GUANZE MEDICAL (02427) announced that it expects the group to incur a loss attributable to company owners of no more than RMB 45 million for the six months ending June 30, 2026, compared to a profit of approximately RMB 3.4 million for the six months ending June 30, 2025. The board believes that the anticipated loss is mainly due to: (i) A decline in gross profit, caused by an increase in sales of medical imaging products and the provision of medical imaging cloud services (both of which have lower gross margins), while software sales decreased (software has higher gross margins); (ii) An increase in depreciation expenses for fixed assets included in cost of sales, administrative expenses, and selling and distribution expenses; (iii) An increase in R&D expenditures; (iv) An increase in share-based payment expenses recognized for the share awards attributable to the change in the controlling shareholder in February 2026.