WEILI HOLDINGS (02372) issued a profit warning, expecting a net loss of approximately 11 million to about 14 million yuan in the first half of the year, a shift from profit to loss compared to the same period last year.

WEILI HOLDINGS (02372) announced that the Group expects to incur a net loss of approximately RMB 11 million to approximately RMB 14 million for the six months ending June 30, 2026, compared to a net profit of approximately RMB 1 million for the six months ending June 30, 2025. For the six months ending June 30, 2026, the anticipated shift from profit to loss is mainly due to: an increase in the net impairment provision for trade receivables, primarily related to specific provisions made for a single customer; and increased unit manufacturing costs along with unfavorable changes in the product mix leading to a decline in gross profit margin. As a result, the Group expects to report a decrease in gross profit and a net loss for the six months ending June 30, 2026, compared to the net profit achieved for the six months ending June 30, 2025.