Kingwisoft Group Issues Profit Warning, Expects Annual Net Loss to Widen Significantly

Kingwisoft Group Limited (HKG: 1195) announced it expects a significant increase in its net loss for the fiscal year, according to a profit warning issued by the company. The firm anticipates a net loss of between RMB 6 million and RMB 12 million for the year ended June 30, 2026.

Widening Losses

The projected loss represents a sharp increase from the previous fiscal year. For the year ended June 30, 2025, the company recorded a net loss of approximately RMB 1.95 million.

The forecast is based on a preliminary assessment of the group's unaudited consolidated management accounts. The company cautioned that these figures have not yet been reviewed by its audit committee or audited by its external auditors, and are subject to potential adjustments.

Impairment Charges Cited

Kingwisoft attributed the expected increase in losses primarily to two factors related to its Xuzhou business operations.

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• Inventory impairment: A write-down in the value of its inventory.
• Goodwill impairment: A reduction in the recorded goodwill associated with the Xuzhou unit.

Impairment charges are non-cash expenses that can signal a deterioration in the value of a company's assets or the profitability of a specific business segment, impacting the bottom line.

Next Steps

Kingwisoft Group stated that it will publish its official, audited annual results for the fiscal year on September 28, 2026. Investors will be watching for the final figures and any further commentary from management on the performance of its operations.