Zall Smart Commerce Group Ltd. (the Group) has issued a profit warning for the six months ended 30 June 2026, projecting a net loss of about RMB1.20 billion. The company reported a net profit of roughly RMB70.00 million in the same period last year.

The expected swing into loss is chiefly driven by an anticipated RMB1.10 billion valuation loss on investment properties, a sharp reversal from the RMB306.00 million gain recorded in the 2025 interim period. The downgrade reflects lower forecast occupancy rates and weaker rental income.

Management’s strategic pivot away from low-margin segments—particularly within its supply-chain management and trading operations covering agricultural products, chemicals, steel and energy—has led to an estimated 60% decline in revenue for the period. Despite the top-line contraction, the company indicates that gross profit margins should improve owing to the focus on higher value-added businesses.

The interim results have not yet been audited and remain subject to adjustments following asset valuations and further review. Zall Smart Commerce plans to publish its full interim results on 31 August 2026 and advises shareholders and potential investors to exercise caution when trading its shares.