TIANLI INT HLDG (01773.HK): Profit Warning, Revenue Up 5.9% to RMB 3.8bn, Profit Down 7.4%-10.5%

NewTimeSpace News: Tianli International Holdings Limited (stock code: 01773) issued a profit warning on 15October 2026. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 August 2026 and the assessment of the currently available information to the Board, the Group is expected to record revenue of approximately RMB 3.8 billion for the year, representing an increase of approximately 5.9% compared with approximately RMB 3.589 billion for the year ended 31 August 2025; profit of approximately RMB 580 million to RMB 600 million, a decrease of approximately 7.4% to 10.5% from approximately RMB 648 million; and adjusted profit of approximately RMB 520 million to RMB 540 million, a decrease of approximately 12.3% to 15.6% from approximately RMB 616 million.

The Company said the improvement in revenue was mainly attributable to the Group's continued expansion and enrichment of its supply chain product matrix, driving significant growth in product sales revenue, as well as the continued promotion and application of its AI product series, which lifted revenue from smart education services steadily.

The Company stated that the decrease in profit and adjusted profit was mainly due to increased R&D investment in the AI quality middle platform and increased marketing and publicity expenses for the AI smart learning products, preparatory and operating expenses incurred in connection with the establishment of a Hong Kong international school, newly added management consulting expenses in connection with the strategic upgrade of focusing on the essence of education and embracing the times, and a higher expected credit loss allowance on receivables compared with the prior year period. In addition, the year-on-year change in profit was also affected by the write-back of impairment losses on property, plant and equipment, which was excluded in the calculation of adjusted profit. The Company also said that for comparability, the adjusted profit for the year ended 31 August 2025 has been restated on the same basis, after no longer treating impairment losses on financial assets as an adjustment item, from approximately RMB 618 million as previously disclosed to approximately RMB 616 million.

The Company cautioned that the figures are based only on a preliminary review of the Group's unaudited consolidated management accounts for the year and the assessment of currently available information to the Board as at the date of the announcement, have not been audited or reviewed by the Company's auditor or the Board's audit committee, and actual results may differ from those disclosed. The results announcement is expected to be published on or before 30 November 2026.