Xinke Intelligent (01967.HK) issued a profit warning, expecting a mid-term net loss not to exceed 5 million yuan, shifting from profit to loss compared to the same period last year.

Zhitong Finance APP reported that Xinken Smart (01967.HK) announced that the Group expects to incur a net loss of no more than approximately RMB 5 million for the six months ending June 30, 2026 (the Current Period), compared to a profit of approximately RMB 2.2 million for the same period in 2025. The net loss for the Current Period is mainly due to a decline in gross profit margin of about 5% to 7%, which is collectively impacted by the following factors: (a) intensified market competition leading to a reduction in orders and price adjustments from a major client; (b) the overall cost in the electronic components industry continues to escalate, with procurement prices of raw materials such as PCBs, chips, diodes, transistors, connectors, and other components rising persistently.