RF GREEN EN AI (00527) has issued a profit warning, indicating that the group expects to record a comprehensive net loss of no less than approximately RMB 700 million for the six months ending June 30, 2026, compared with a comprehensive net loss of approximately RMB 40.357 million for the corresponding period in 2025.

The board attributes the anticipated surge in net loss for the period primarily to share-based payment expenses of approximately RMB 692 million arising from the issuance of subscription shares and the 2026 Hong Kong dollar convertible bonds, which were measured and recognized at fair value upon completion. These expenses represent unidentified service elements related to the subscription shares and the 2026 Hong Kong dollar convertible bonds, resulting from the difference between the fair value of these instruments at the grant date and the cash proceeds received, mainly due to the closing share price of HK$0.72 per share on the 2026 grant date, significantly higher than the subscription price B and the Hong Kong dollar conversion price of HK$0.196 per share stipulated in the subscription agreement dated June 21, 2024.