Technovator (01206.HK) issued a profit warning, expecting a loss of between 70 million and 80 million RMB for the six months ended in June, compared to a profit of 13.9 million RMB in the same period last year. The increase in losses is mainly due to the impact of market conditions and government investment policy adjustments, project investments being postponed leading to decreased revenue, and intense industry competition. In order to maintain its market position, the group keeps a relatively low gross margin level.