Blessing Life Service (03686) Fa Ying Police expects a sharp year-on-year decline in performance for the first half of 2026

Zhitong Finance App News, Fortune Life Service (03686) issued an announcement. The Group is expected to confirm the following matters: (i) Proceeds from the sale of undistributed silver bars of RMB 43.3 million (first half of 2025: none), involving the Group's sale of a total of 680,000 oz of undistributed silver bars on January 9 and 12, 2026; (ii) Proceeds from the sale of undistributed gold bars RMB 1.1 million (first half of 2025: none), involving the Group on February 25, 2026 On March 3, 2026 and March 4, 2026, a total of 2,730 oz undistributed gold bars were sold;

(iii) Fair value loss of RMB9.3 million from undistributed gold bar investments (first half of 2025: none); (iv) fair value loss of RMB12.9 million (first half of 2025: none); (v) Fair value loss of RMB59.9 million from allotted gold bar investments (first half of 2025: no distributed silver bars, while undistributed silver bullion investments recorded fair value income of RMB 33.8 million).

Expected confirmed fair value losses (i.e. items (iii) to (v) above) are mainly due to a drop in the market prices of the relevant precious metals from the respective initial purchase dates to June 30, 2026. These fair value losses are unrealized because the precious metals were not sold on June 30, 2026 or the date of this announcement.

The total expected fair value loss as described in (iii) to (v) above is approximately RMB 82.1 million, while the total sales proceeds described in (i) and (ii) above are approximately RMB 44.4 million.

In view of the above situation, the Board of Directors believes it is appropriate to issue this profit warning notice because the Group's performance in the first half of 2026 will be affected by these factors and is likely to drop significantly from the first half of 2025.