MICROPORT (00853) has issued a profit warning, announcing that for the six months ending June 30, 2026, the group's revenue from continuing operations is expected to grow by approximately 12% to 14% year-on-year. Notably, its overseas business continues to deliver robust growth of around 140%.

The group's operational profitability is steadily improving, with the gross margin for continuing operations expected to increase by approximately 3 to 4 percentage points year-on-year, supported by ongoing refined operations and cost control measures. During the period, continuing operations are expected to report an operating net profit of no less than $24 million, compared to an operating net loss of $413 million for the same period in the previous year.

However, the group is still expected to record a net loss from continuing operations of no more than $50 million for the period, largely due to financial costs of approximately $43 million, foreign exchange fluctuations, fair value remeasurement of convertible loans, and one-time or non-cash losses from asset impairments and transaction events. This compares to a net loss of $49 million from continuing operations in the same period last year.

As of the date of this announcement, the company has obtained a waiver for the financial covenant applicable during the period under the relevant convertible loan agreements. Looking ahead, MICROPORT will continue to adhere to its "focus on core" strategy, seeking mutually beneficial solutions for non-core or loss-making businesses, and will actively manage and optimize its debt terms and structure to further improve operational and financial performance.