RUICHANG INTL (01334) issued a profit warning, expecting a mid-term net loss of approximately 24.75 million yuan, narrowing compared to the same period last year.

RUICHANG INTL (01334) announced that it expects the Group to incur a net loss of approximately RMB 24.75 million for the six months ending June 30, 2026, which is a reduction of about 35% compared to the net loss of RMB 38.06 million for the six months ending June 30, 2025 (the same period last year). The narrowing of the net loss during this period is mainly attributed to revenue growth driven by business expansion and a strong backlog of orders. Despite the revenue growth, the Group still incurred a net loss during this period, primarily due to: several newly acquired contracts still being in the performance cycle, with most revenue yet to be recognized and corresponding profits not yet realized; the characteristic of the Groups industry where revenue is primarily recognized in the second half of the financial year, resulting in a loss for this period; and additional costs incurred from expanding overseas markets and developing new business lines (including phosphorus recovery business).