FLOWING CLOUD issued a profit warning, expecting a loss attributable to equity holders of approximately 100 million to 130 million yuan in the first half of the year, a year-on-year turnaround from profit to loss
FLOWING CLOUD expects to incur a loss attributable to equity holders of approximately RMB 100 million to 130 million in the first half of 2025, a significant decline compared to the profit of RMB 63.5 million in the same period of 2024. The decline in performance is mainly due to a decrease in gross profit, a decline in revenue from AR/VR marketing services of approximately RMB 108.2 million, an increase in impairment losses on trade receivables of no more than RMB 90 million, and an increase in selling and distribution expenses of approximately RMB 59.2 million
According to the Zhitong Finance APP, FLOWING CLOUD (06610) announced that the group expects to incur a loss attributable to equity holders of approximately RMB 100 million to 130 million in the first half of 2025, a significant decrease compared to the profit of approximately RMB 63.5 million achieved in the same period of 2024.
The announcement stated that the decline in performance is mainly attributed to a decrease in gross profit, primarily due to a decline in revenue from the group's augmented reality and virtual reality (AR/VR) marketing services, which is expected to decrease by approximately RMB 108.2 million compared to the mid-2024 period; after an internal assessment of the recoverability of trade receivables, the impairment loss for these amounts is expected to increase by no more than approximately RMB 90 million compared to the mid-2024 period; and selling and distribution expenses increased by approximately RMB 59.2 million, mainly due to increased marketing expenses paid to third-party service providers, reflecting the group's intensified efforts to launch and promote its services and platform in the mid-2025 period
