Zhengtong Auto (01728) issued a profit warning. Net loss is expected to increase by about 17% year-on-year in the medium term

Zhitong Finance App News, Zhengtong Auto (01728) issued an announcement. Based on a preliminary assessment of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 and the information currently available to the board of directors, it is expected that the net loss recorded by the Group for the six months ended June 30, 2026 will increase by about 17% over the revised comparative figure for 2025. The increase in net loss was mainly affected by factors such as a decrease in new vehicle sales and a reduction in mortgage rebate rates.

Due to the adoption of consolidated accounting principles, the Group's comparative figures for the six months ended June 30, 2025 will be restated, as the Group's acquisition of all shares of Xiamen Cinda Guomao Automobile Group Co., Ltd. and Guomao Automobile (Thailand) Co., Ltd. (both recorded under the same controlled business consolidation) occurred at the beginning of the financial period as shown (after restating the comparative figures for 2025).

Based on the long-term strategic support of Xiamen Guomao Holding Group Co., Ltd., the controlling shareholder of the Group, and based on the evaluation of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026, the board of directors believes that the Group can adapt to changes in the industry and continue to maintain its business development.