AUTOSTREETS (02443) issues a profit warning, expecting a mid-term net loss attributable to shareholders of no more than 15 million yuan, a shift from profit to loss year-on-year.

AUTOSTREETS (02443) announced that the group expects to record a net loss attributable to shareholders of no more than RMB 15 million for the six months ending June 30, 2026, compared to a net profit of approximately RMB 12.8 million for the same period in 2025. The anticipated net loss is mainly due to a weak domestic automobile consumption market and increased competition in the automotive industry, leading to some automobile dealers withdrawing from the market or reducing their operations, which has resulted in a decline in the group's revenue and gross profit in the first half of 2026 compared to the same period in 2025. In response to the changing market environment, the group will continue to advance the development of a used car export platform and explore new auction models. Given that these initiatives are still in the implementation and development stages, their expected effects are likely to gradually become apparent starting in the second half of 2026.