SHOUHUI GROUP (02621) issues a profit warning, expecting mid-term net profit to be between 64 million and 84 million yuan.

SHOUHUI GROUP (02621) announced that the Group expects to record revenue between RMB 617 million and RMB 637 million for the six months ending June 30, 2026, representing an increase of between RMB 62 million and RMB 82 million compared to the revenue recorded for the six months ending June 30, 2025. The net profit for the six months ending June 30, 2026, is expected to be between RMB 64 million and RMB 84 million, which is a decrease of between RMB 582 million and RMB 602 million compared to the net profit recorded for the six months ending June 30, 2025. Additionally, the adjusted net profit attributable to shareholders (non-Hong Kong Financial Reporting Standards measurement) for the six months ending June 30, 2026 is expected to be between RMB 66 million and RMB 86 million, which is an increase of between RMB 0 and RMB 20 million compared to the adjusted net profit attributable to shareholders (non-Hong Kong Financial Reporting Standards measurement) for the six months ending June 30, 2025. The Board considers that the main reason for the expected change in net profit is due to zero changes in fair value gains on financial instruments issued to investors for the six months ending June 30, 2026, while the corresponding figure for the six months ending June 30, 2025, was RMB 619 million. The Group will not record any further changes in the fair value of financial instruments issued to investors after the Companys shares are listed, as the preferred shares automatically convert into ordinary shares post-listing, resulting in the reclassification of financial instruments from liabilities to equity. The anticipated increase in adjusted net profit attributable to shareholders (non-Hong Kong Financial Reporting Standards measurement) is mainly due to: (i) the Group seizing market opportunities and intensifying business development efforts, leading to steady growth in insurance trading service revenue; and (ii) an increase in unrealized gains from financial assets measured at fair value with changes recognized in profit or loss. Despite the above information, the Board believes that the Group's overall operations, financial condition, and cash flow remain robust.