Newlink Technology Inc. Issues Profit Warning, Projects Significant Losses for FY2025

Key Highlights

• Profit Warning Issued: Newlink Technology Inc. has issued a profit warning for the financial year ended 31 December 2025.
• Expected Loss: The Group is expected to record a loss attributable to owners of no less than RMB150 million for FY2025.
• Comparison with Previous Year: This loss is a significant increase compared to the loss of RMB92.5 million for the year ended 31 December 2024.
• Main Reasons for Loss:
  • Increase in allowance for expected credit losses on trade receivables and contract assets (net).
  • Loss on change in fair value of equity investments at fair value through profit or loss.
• Preliminary Figures: The financial figures provided are based on unaudited consolidated management accounts and have not yet been audited or reviewed by the Company’s auditors or the audit committee.
• Final Results Pending: The finalised results will be published in the Group’s annual results announcement, expected by the end of March 2026.

Details for Shareholders and Investors

Newlink Technology Inc. (Stock Code: 9600), listed on the Hong Kong Stock Exchange, has announced via a Board statement that based on management accounts and preliminary assessments, the Group anticipates a consolidated net loss of no less than RMB150 million for the year ended 31 December 2025. This is a substantial increase from the RMB92.5 million net loss reported for the previous year.

The Board attributes the increased loss mainly to two factors:

1. Allowance for Expected Credit Losses: There has been a notable increase in allowance for expected credit losses on trade receivables and contract assets, reflecting possible collectability concerns and heightened credit risk in the Company’s business environment.
2. Fair Value Losses on Equity Investments: The Group has also incurred losses due to changes in the fair value of equity investments that are measured at fair value through profit or loss. This suggests market volatility or underperformance by investee companies/assets.

The Board emphasises that these figures are based on management’s preliminary assessment of unaudited management accounts, and the actual audited results may differ. Shareholders and potential investors are strongly advised to review the final results when they are published, as the numbers in this announcement are subject to change.

Potential Impact on Share Price

This announcement is highly price sensitive and may have a significant impact on the Company’s share price. The projected widening of losses and increased credit risk could affect investor sentiment and valuation, particularly as the loss for FY2025 is expected to be more than 60% higher than the prior year’s loss. Shareholders should exercise caution and closely monitor further announcements from the Company, especially the final audited results to be released by the end of March 2026.

Board and Management Statement

The announcement was issued by Mr. Zhai Shuchun, Chairman of the Board and Chief Executive Officer, on behalf of the Board. The current executive Directors are Mr. Zhai Shuchun, Ms. Qin Yi, and Mr. Li Xiaodong. Independent Non-Executive Directors are Mr. Tang Baoqi, Ms. Yang Juan, and Mr. You Linfeng.

Important Note for Investors

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Newlink Technology Inc. The Company will issue further details in its annual results announcement for the year ended 31 December 2025, which is expected to be published by the end of March 2026.

Disclaimer: The information provided in this article is based on preliminary, unaudited management accounts and forward-looking statements from Newlink Technology Inc. Actual results may differ after audit and review. This article is for informational purposes only and does not constitute investment advice. Investors should exercise caution and seek professional advice before making any investment decisions.

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