Lancang Ancient Tea (06911) Fa Yingxi expects a net profit of about 1.5 million to 3 million yuan in the medium term to turn a year-on-year loss into a profit

According to Zhitong Finance App News, Lancang Ancient Tea (06911) announced that the Group is expected to obtain revenue of approximately RMB 155 million to RMB 170 million in the semi-annual year of 2026, an increase of about 29.70% to 42.25% from the revenue of RMB 119.5 million for the six months ending June 30, 2025; at the same time, net profit attributable to shareholders of the parent company is approximately RMB 1.5 million to RMB 3 million, which will turn a loss into a profit compared to the net loss of RMB 29.17 million for the first half year of 2025.

The board of directors believes that the main reasons for the 2026 semi-annual revenue growth and net profit attributable to shareholders of the parent company turned losses into profits are as follows:

(1) Reasons for revenue growth: The company adjusted its business strategy and product structure, and online, KA and dealer channels increased overall during the reporting period;

(2) Reasons for turning losses into profits: While revenue increased, management reduced costs and expenses through cost reduction and efficiency measures, and the total amount of expenses decreased during the reporting period.