WELLCELL HOLD (02477) has issued a profit warning, indicating that the group anticipates recording a net loss attributable to shareholders of no more than approximately RMB 45 million for the six-month period ending 30 June 2026, a stark contrast to the net profit of approximately RMB 7.717 million reported for the same period in 2025.

The expected net loss is primarily attributable to several factors. Firstly, the group has experienced fair value losses on financial assets measured at fair value through profit or loss. Secondly, the telecommunications business segment is expected to post a loss for the period, impacted by market saturation, intensified industry competition, and rising operational costs, whereas it had generated a profit during the corresponding period last year.

Furthermore, the company launched its fintech business in the second half of last year and initiated an artificial intelligence (AI) strategy upgrade during the reporting period to expand into computing power services for AI infrastructure. These new business ventures have consequently led to a corresponding increase in employee benefit expenses and other operating expenditures.