REGO INTERACT (02422) has announced a positive profit alert, projecting a turnaround for its interim financial results.

For the six months ending June 30, 2026, the group expects to record a net profit after tax of no less than RMB 2.3 million. This marks a significant recovery from the net loss after tax of approximately RMB 20.8 million reported for the same period in the prior year, which ended June 30, 2025.

The group also anticipates an adjusted net profit of at least RMB 1.7 million for the first half of fiscal 2026. This compares to an adjusted net loss of roughly RMB 19.1 million in the corresponding period last year. The adjusted profit figure is defined as the period's profit or loss, adjusted for exchange differences and fair value changes on financial assets measured at fair value through profit or loss.

The board attributes the swing to profitability to three key factors. First, the company has maintained a prudent policy in selecting high-quality clients to manage credit risk exposure, while simultaneously intensifying collection efforts on trade receivables. Second, proactive measures have been taken to optimize the cost structure to support long-term growth and enhance operational resilience. This approach aims to maintain flexibility, protect core business investments, and generate long-term value for stakeholders. Third, the successful completion of a subsidiary sale in December 2025 effectively reduced the group's overall cost base. By implementing these strategic cost reductions, REGO INTERACT can redirect capital toward higher-margin growth opportunities.