Metalight (02605) issues profit warning, expecting a net loss of approximately 1.15 billion to 1.35 billion in the first half of the year, a turnaround from profit to loss compared to the same period last year.

METALIGHT (02605) announces that the group is expected to incur a net loss of approximately RMB 115 million to RMB 135 million in the first half of 2025, compared to a net profit of approximately RMB 230,000 in the first half of 2024. This marks a change from profit to loss compared to the same period last year. The above change is mainly due to the following factors: Before the company was listed on the Hong Kong Stock Exchange on June 10, 2025, it issued convertible redeemable preference shares. These preference shares were automatically converted to ordinary shares at the time of listing. The fair value loss recognized on these preference shares in the first half of 2025 increased by over 100% compared to the first half of 2024, mainly reflecting valuation changes prior to conversion, and this loss is the main reason for the shift from profit to loss in this period. Equity-settled share-based expenses recognized by the company in the first half of 2025 increased by over 80% compared to the first half of 2024, further affecting the performance in this period. Listing-related expenses incurred by the company in the first half of 2025 also increased by over 30% compared to the first half of 2024, constituting additional expenses for this period. Losses from fair value changes on equity investments measured at fair value by the company in the first half of 2025 resulted in a decrease of over 500% compared to the same period in 2024, compared to fair value changes gains in the previous year, negatively impacting the performance in this period to a certain extent. Nevertheless, based on the information currently available to the board of directors, the group is expected to achieve an adjusted net profit of approximately RMB 27 million to RMB 30 million in the first half of 2025 (non-International Financial Reporting Standards), an increase from approximately RMB 26.87 million in adjusted net profit in the first half of 2024, mainly due to a revenue increase of over 5% in the first half of 2025 compared to the first half of 2024.