FRONTAGE (01521) announced its financial results for the three months ended March 31, 2026. The Group achieved a net profit of approximately $2.9 million, a significant improvement compared to a net loss of about $0.9 million in the same period of 2025. Revenue reached approximately $67.9 million, representing an increase of 18.9% year-on-year.
After excluding share-based compensation expenses, amortization of intangible assets acquired through business combinations, and merger-related expenses, the Group's adjusted net profit was approximately $5.0 million. This marks a substantial increase of 212.5% compared to the approximately $1.6 million recorded in the first quarter of 2025.
The significant improvement in the Group's net profit, including the adjusted net profit for Q1 2026, is primarily attributable to several key factors. These include: (1) a recovery in market demand driving the year-on-year revenue growth, with economies of scale gradually becoming apparent; (2) the continued and deepened implementation of lean operational initiatives, which have significantly enhanced operational efficiency and contributed to year-on-year growth in both the overall net profit margin and the adjusted net profit margin; and (3) the consolidation of Shanghai Guanhe Medical Technology Co., Ltd., following the completion of its acquisition on March 3, 2026, which contributed additional revenue and profit during the period.
As of March 31, 2026, the Group's unaudited consolidated net asset value was approximately $351.8 million, compared to approximately $334.6 million as of December 31, 2025.