Morimatsu International (02155) issued a profit warning. The medium-term loss is expected to be about 150 million yuan to 180 million yuan year-on-year profit and loss

According to the Zhitong Finance App, Morimatsu International (02155) announced that the Group expects to make a loss of approximately RMB 150 million to RMB 180 million for the six months ending June 30, 2026 (reporting period), and profit of RMB 333 million for the six months ending June 30, 2025.

Expected losses during the reporting period are mainly due to the following factors: (i) the impact of geopolitical and macroeconomic environments. During the reporting period, due to continued turbulence in the geopolitical situation in the Middle East, the Group's product delivery in the region was delayed, and its short-term revenue conversion was under pressure, causing the region's revenue contribution and profit to be significantly lower than expected. At the same time, the obstruction of international trade logistics and rising supply chain costs also had a negative impact on the Group's gross margin; (ii) the downstream industry environment. During the reporting period, projects were postponed or suspended due to a decline in market demand in related downstream industries and a slowdown in capital investment, which increased the Group's accounts receivable risk and increased anticipated credit loss provisions. At the same time, market competition in energy and materials continued to be intense, leading to a decrease in the average order price, which had a negative impact on the Group's gross margin; and (iii) exchange rate fluctuations caused exchange losses. During the reporting period, the exchange rate of RMB against the US dollar and the euro continued to strengthen. As a result, the US dollar and euro assets and foreign currency receivables held by the Group caused significant exchange losses, further reducing profits during the reporting period.

The Company has taken and/or will take a number of measures to improve its operating performance, including: (i) optimizing the global delivery and service network, combining overseas production capacity layout, reducing business dependency on geopolitical hotspots, and rationally diversifying downstream markets and customer composition based on a long-term orientation based on corporate strategy; (ii) actively expanding resiliency tracks and promoting full-life cycle services. While consolidating traditional dominant industries, the Group will accelerate the transition to high-value-added circuits such as artificial intelligence computing infrastructure, sustainable energy, and life technology. By rationally allocating corporate resources, the Group will strengthen risk management and control, improve operational quality and financial efficiency; and (iii) actively manage exchange rate risk by adjusting settlement strategies in due course, carrying out forward foreign exchange settlement and foreign exchange hedging services, and actively explore the feasibility of using RMB settlement for international customers.

Although the financial performance during the reporting period was affected by the above factors, the Group's fundamentals and long-term growth logic remained steady. The Board of Directors believes that the performance during the reporting period mainly reflects the financial performance under specific delivery nodes and does not fully reflect the Group's long-term profitability and business model.

The Board of Directors maintains confidence in the Group's medium- to long-term business development and prospects.