MOG DIGITECH (01942) has issued a profit warning, projecting an unaudited consolidated net loss attributable to company owners of no less than approximately RMB 30 million for the 2026 interim period. This contrasts sharply with the unaudited consolidated net profit of around RMB 1.9 million recorded in the same period of 2025.
The anticipated loss is primarily driven by a substantial decline in both revenue and gross profit. This downturn is largely attributed to intense competition in the Chinese market, which has significantly reduced revenue from the digital payment solutions business segment. Additionally, the financing services segment faced insufficient funds to provide working capital liquidity to clients, and the optical products retail, franchising, and licensing management divisions saw reduced revenue and gross profit due to the divestiture of certain subsidiaries in 2025 and a decrease in procurement rebates.