CC NEW LIFE (09983) has issued a profit warning, announcing that the group expects to record a consolidated net loss of approximately RMB 20 million to RMB 35 million for the first half of 2026, compared with a consolidated net profit of about RMB 112 million for the same period in 2025.

The anticipated consolidated net loss is primarily attributable to an increase in impairment losses on receivables. This is mainly due to the persistently challenging operating environment, which has led to heightened credit risk on certain receivables and a slowdown in collection speed. The group, adopting a prudent approach, has reassessed the expected credit losses on the relevant financial assets, resulting in higher impairment provisions for the six months ended 30 June 2026 compared with the corresponding period in 2025.

Despite this, the group expects its core net profit attributable to shareholders for the first half of 2026 to be approximately RMB 135 million to RMB 145 million, representing a decrease of about 2.0% to 8.7% compared with the same period in 2025. Core net profit attributable to shareholders is calculated based on profit attributable to shareholders, adjusted for net impairment losses on financial and contract assets, fair value gains or losses on financial assets measured at fair value through profit or loss, share-based payments, and related income tax effects.