Baolong Technology (01861) issued a profit warning. It is expected that the net loss due to shareholders in the medium term will not exceed HK$16 million year-on-year profit and loss

According to the Zhitong Finance App, Baolong Technology (01861) announced that the Group expects to obtain a net loss attributable to shareholders of no more than HK$16 million in the six months ending June 30, 2026 (this period), while net profit attributable to shareholders is approximately HK$52.7 million for the six months ending June 30, 2025.

According to information currently available to the board of directors, the board believes that the shift from profit to loss is mainly due to: (i) disposal proceeds of about HK$14.3 million from the sale of a yacht made in the same period in 2025 were not recovered; (ii) the decline in e-commerce sales during this period led to a reduction of approximately 18.3% in gross profit (although sales and distribution costs were reduced by about 48.3%); and (iii) the confirmed impairment loss of approximately HK$31.6 million at the factory production site in Thailand during the period.