Jiarui International (00822) issued a profit warning. The net loss attributable to shareholders is expected to increase by no more than HK$60 million in the first half of the year

According to the Zhitong Finance App, Jiarui International (00822) announced that the Group expects to obtain a net loss of no more than HK$60 million for the six months ending June 30, 2026, while the net loss attributable to equity holders of the Company is approximately HK$39.4 million for the same period in 2025.

According to the announcement, although the Group's turnover is expected to increase in 1H2026 compared to 1H2025, the net loss has increased, mainly due to the following intense industry bidding and bidding mechanisms and weak market environment factors:

1. Under the bidding and tendering mechanism commonly used in the industry, peers generally adopt extremely aggressive pricing strategies to compete for orders. The Group adjusted its pricing strategy in response to market conditions. Unfortunately, the revenue increase in the first half of 2026 did not achieve the expected year-on-year increase; and

2. Due to uncertain global macroeconomics, customer procurement trends are cautious and demand product price reductions and order volume adjustments, leading to a sharp drop in the Group's short-term gross margin during the period.