APT ELECTRONICS (02551) issues a profit warning, expecting a mid-term net loss of 53 million to 58 million yuan, a turnaround from profit to loss compared to the same period last year.

APT ELECTRONICS (02551) announced that, based on a preliminary review of the Group's unaudited consolidated management accounts for the six months ending June 30, 2026 (the reporting period) and existing other information, the Group expects to achieve (1) operating revenue of between RMB 1.075 billion and RMB 1.1 billion during the reporting period, a decrease of approximately 1% to 3% compared to the six months ending June 30, 2025; and (2) a net loss of between RMB 53 million and RMB 58 million (net profit for the six months ending June 30, 2025 was RMB 11.23 million). The primary reasons for the decline in net profit during the reporting period are: (i) intensified competition in the automotive and high-end lighting industries, leading to a temporary decline in sales prices and operating revenue of automotive intelligent lighting and high-end lighting products; (ii) an increase in pre-production expenses for the Guangzhou Lingwei Visual Greater Bay Area headquarters project, which is being continuously invested in to expand the Group's future business development and actively implement strategic layout; and (iii) rising prices of raw materials such as precious metals and PCB materials, resulting in an increase in product costs. Although the overall performance is under pressure in the short term, the Group's business structure continues to optimize, and its high value-added businesses have shown strong growth resilience: the new display business has achieved revenue growth against the trend, thanks to the core competitive advantage of Mini LED products, particularly in the industry-leading position of RGB Mini LED in terms of capacity scale, manufacturing efficiency, and quality control; automotive-grade LED devices and modules have maintained steady revenue growth reliant on technological leadership and product reliability. The performance of these businesses demonstrates the strategic value of the Group's collaborative layout among its three major business segments, hedging against industrial cycle fluctuations. The Group's main business consists of three segments: automotive intelligent vision, new displays, and high-end lighting, and the long-term positive trend of its main business remains unchanged. In the future, the Group will continue to adhere to the development concept of innovation-driven, high-end manufacturing, promoting sustainable and steady business development through deepening vertical integration of the industry chain, enhancing technological innovation, reasonable capacity expansion, and precise layout in high-growth areas.