WG ENV TECH (01845) has issued a profit warning, projecting a significantly larger loss for the six months ending June 30, 2026.

The company expects a net loss attributable to owners of between approximately RMB 12 million and RMB 14 million for the period. This compares to a loss of RMB 7.3 million recorded in the same half-year period in 2025.

The anticipated widening of the loss is primarily attributed to a decrease in expected credit impairment reversals. The group expects these reversals to be approximately RMB 5 million to RMB 7 million lower in the first half of 2026, compared to the RMB 8.3 million reversal recorded in the corresponding period of 2025.

The company explained that the aging of its trade receivables did not change significantly during the six months ended June 30, 2026. The reduction in the expected credit impairment reversal is mainly due to a larger amount of receivables collected by its subsidiary, Guangzhou WG ENV TECH Co., Ltd., in the first half of 2025. This larger collection in the prior period led to the recognition of a larger expected credit impairment reversal in that same period.