Mingchuang Premium (09896) expects mid-term profit of about 940 million yuan to 960 million yuan, an increase of about 4% to 6% year-on-year

Zhitong Finance App News, Mingchuang Premium (09896) announced that for the six months ending June 30, 2026 (the first half of 2026), the Group will obtain (i) revenue of approximately RMB 11.45 billion to RMB 11.5 billion, an increase of about 22% to 23%; (ii) operating profit of approximately RMB 1.62 billion to RMB 1.66 billion, an increase of about 5% to 7%; (iii) profit for the period is approximately RMB 940 million to RMB 960 million, an increase of about 4% to 6% year on year; and (iv) basic and diluted share per share Profit was approximately RMB 0.78 to RMB 0.79, up approximately 5% to 7% and 6% to 9%, respectively.

The increase in operating profit in the first half of 2026 was mainly due to changes in the fair value of an investment in a limited partnership enterprise investing in the artificial intelligence industry, which generated unrealized and market-valued earnings of approximately RMB 277 million, which were partially offset by: (i) increased sales and distribution expenses; and (ii) net exchange losses of approximately RMB 142 million.

The increase in profit during the first half of 2026 was mainly due to the following factors: (i) the fair value change of the above investment in a limited partnership enterprise investing in the artificial intelligence industry, which generated unrealized and market capitalization earnings of approximately RMB 277 million; and (ii) a share of the revenue from its investment in Yonghui Supermarket Co., Ltd. (Yonghui). These positive factors were partially offset by the following factors: (i) increased sales and distribution expenses; (ii) net exchange loss of approximately RMB 142 million; (iii) increased financial costs, mainly due to increased interest expenses on leasing liabilities driven by investment in direct-run stores; (iv) losses due to changes in fair value of derivatives affected by market capitalization relating to equity-linked securities (equity-linked securities) issued by the Company in 2025; and (v) fair redemption value of liabilities due to TOP TOY's strategic financing preferential shares issued in 2025 Motion-generated loss.

In the first half of 2026, the Company expects to obtain (i) adjusted operating profit of approximately RMB 1.61 billion to RMB 1.65 billion, an increase of approximately 4% to 6% year over year; and (ii) adjusted net profit excluding exchange gains and losses of approximately RMB 1.21 billion to RMB 1.23 billion, a year-on-year decrease of about 1% to 3%.

The Group defines adjusted operating profit as the operating profit for the period after excluding equity settlement share payment expenses and fair value change income or loss from the investment of a limited partnership investment in the artificial intelligence industry, while adjusted net profit is defined as profit for the period after excluding the following items: (i) share payment expenses settled by equity; (ii) income or loss from changes in the fair value of derivatives; (iii) derivative issuance costs; (iv) interest expenses relating to equity-linked securities and interest relating to bank loans used to acquire Yonghui shares expenses; (v) priority Changes in the fair value of redemption liabilities arising from shares; (vi) share in Yonghui's profits or losses (before taxes); and (vii) fair value change gains or losses invested in a limited partnership invested in the artificial intelligence industry.