Xinken Intelligence (01967) issued a profit warning. The net loss for the medium term is expected to be no more than 5 million yuan year-on-year profit and loss

Zhitong Finance App News, Xinken Intelligence (01967) announced that the Group expects a net loss of no more than RMB 5 million for the six months ending June 30, 2026 (this period), while profit of about RMB 2.2 million for the same period in 2025. The net loss during the period was mainly due to the decline in gross margin of about 5% to 7% during the period. This was due to the combined effects of the following factors: (a) the current intensification of market competition, leading to a decrease in orders and price reductions from a major customer; (b) the overall cost of the electronic component industry continued to rise, such as the purchase price of raw materials such as PCBs, chips, diodes, electrical crystals, connectors and other components.