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