NEUTECH GROUP issues a profit warning, expecting a decline of approximately 20%-30% in interim profit attributable to shareholders

According to the announcement from NEUTECH GROUP (09616), it is expected that for the six months ending June 30, 2025, the group will achieve: a profit attributable to the owners of the company is expected to decrease by approximately 20%-30% compared to the same period ending June 30, 2024; the adjusted net profit attributable to the owners of the company is expected to decrease by approximately 20%-30% compared to the same period ending June 30, 2024.

The board of directors believes that the decline in profit attributable to the owners of the company and the adjusted net profit attributable to the owners of the company is mainly due to the following reasons: (i) an increase in costs and expenses, primarily because: the group completed the acquisition of Dongsoft Health Management Co., Ltd. (Dongsoft Health, collectively referred to as the "Health Management Group" along with its subsidiaries) on May 31, 2024, to create a new ecosystem for integrated development of "education, healthcare, elderly care, and tourism," achieving a strategic transformation and upgrade, and the financial performance of the Health Management Group is fully consolidated into the group during this period; and the group has increased investment in other health-related businesses to promote strategic transformation and upgrade; (ii) delays in the delivery of educational technology products have led to a decrease in revenue from educational resource output business; and changes in the market have resulted in a decrease in student enrollment, leading to a reduction in revenue from continuing education services