According to the Zhitong Finance App, Zhihua Group (01842) announced that compared with the net loss of approximately HK$8.5 million for the six months ended June 30, 2025 (first half of 2025), the Group may have recorded a net loss of approximately HK$10 million to approximately HK$12 million in the first half of 2026. The expected increase in net loss in the first half of 2026 is mainly due to a decline in earnings and gross margin in the first half of 2026, mainly due to (i) a decrease in sales to the US; and (ii) a decrease in sales of medical products, which in the past were highly profitable products. These factors were partly offset by the confirmation in the first half of 2026 of about HK$300,000 of net realized and unrealized fair value earnings of about HK$300,000 on financial assets that were recorded at fair value, while the first half of 2025 recorded a net loss of about HK$2.7 million on realized and unrealised fair value losses on financial assets that included profit and loss at fair value in the first half of 2025.

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