Zhejiang Zhongjian Technology Co LtdCompany expects a first-half loss due to increased R&D spending and forex losses, swinging from profit to loss.

Zhongjian Technology announced it expects a loss of 5.8 million to 11.6 million yuan for the first half of 2026, a decline of 111.36% to 122.72% from a profit of 51.06 million yuan in the same period last year. The company's operating revenue grew sharply year on year, with steady performance in its garden machinery business, but net profit swung to a loss due to the combined impact of R&D spending and foreign exchange gains and losses. During the reporting period, the company expanded its embodied intelligence R&D team and increased investment in basic research and cutting-edge technology exploration for robot components and complete machines, leading to a significant year-on-year rise in R&D expenses. At the same time, it incurred substantial foreign exchange losses from fluctuations in the US dollar and euro against the yuan, pushing up financial costs. In 2025, the company's net profit attributable to shareholders was 173 million yuan, surging 166.85% year on year, but this was mainly driven by a 167 million yuan investment gain from changes in the fair value of its stake in overseas AI robotics company 1X. Excluding non-recurring items, net profit was only 40.64 million yuan, down 22.04% year on year. As of the close on July 14, Zhongjian Technology shares traded at 71.09 yuan, having fallen 37% year to date.
Zhejiang Zhongjian Technology Co LtdCompany expects a first-half loss due to increased R&D spending and forex losses, swinging from profit to loss.