Hengxin Technology (01085.HK) issues profit alert, expecting the profit attributable to shareholders in the first half of the year to be no more than 10 million yuan.

Zhiyun Finance APP news, Hengxin Technology (01085.HK) announced that the company expects to achieve a net profit attributable to shareholders of no more than RMB 10 million for the six months ending June 30, 2026, based on unaudited results. In contrast, the company reported an unaudited net loss attributable to shareholders of approximately RMB 70.4 million for the same period last year. The Board of Directors believes that the net profit attributable to shareholders for this reporting period represents a turnaround from loss to profit compared to the same period last year, primarily due to improvements in revenue and gross margin, as well as a significant reduction in corporate income tax. This reduction in tax expense was due to the absence of dividends between group companies that would require the payment of Chinese corporate income tax during this reporting period, whereas such tax expenses were incurred in the same period last year.