Yihuatong (02402)'s profit warning expects medium-term losses to decrease by about 35% — 45% year-on-year

According to the Zhitong Finance App, Yihuatong (02402) announced that the Group's losses for the six months ending June 30, 2026 will be reduced by about 35% to 45% compared to the same period in 2025. This change is mainly due to: (1) the Group deepened collaborative management of the supply chain during the reporting period, which led to a year-on-year decline in sales costs; while continuing to promote a business strategy of cost reduction and efficiency, operating expenses such as sales, administration and R&D also decreased year on year; and (2) the Group's preparation for bad debts to be transferred back to previous years increased year-on-year during the reporting period, which led to a change in net loss from net loss to net income; losses of affiliated companies accounted for by the equity method decreased year-on-year due to a decrease in the shareholding ratio of some affiliated companies. Together, these factors had a positive impact on the narrowing of losses during the reporting period.