MGI Tech Co. Ltd. A

Guofa Shares disclosed its earnings forecast, expecting a net loss attributable to the parent of 11.6 million yuan in the first half of 2026, compared with a loss of 5.8417 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 11 million yuan, compared with a loss of 6.1347 million yuan a year earlier. The company holds a 27.03 percent stake in Nanjing Huada Gongying No. 1 Venture Capital Enterprise. Affected by capital market fluctuations, the share prices of MGI Tech and YZY Biopharma held by the fund fell, causing the fund to incur losses. Investment income for the period turned from profit to loss, estimated at about negative 3.15 million yuan, compared with investment income of 7.5431 million yuan contributed by the fund in the same period last year. Sales revenue of the pharmaceutical factory's Pearl Bright Eye Drops increased by about 20 percent year on year, and the loss narrowed. However, due to market expansion falling short of expectations, revenue scale has not reached the break-even point, and it remains in a loss-making state. The Qinzhou Traditional Chinese Medicine Decoction Pieces Factory, affected by the deepening of the centralized procurement policy for Chinese medicine decoction pieces, lost market share in hospital channels for non-winning varieties, leading to a year-on-year decline in sales revenue and a decrease in net profit. The pharmaceutical distribution business, impacted by the continuous deepening of national centralized procurement and industry cost-control policies, saw an overall year-on-year decline in gross margin. At the same time, selling expenses increased year on year to stabilize market share, resulting in a year-on-year decline in net profit.