"Profit Warning" C WAN TONG YUAN expects to incur additional tax payments, anticipating a loss in the mid-term results

C WAN TONG YU (06966.HK) issued a profit warning, expecting to record a loss for the six months ending in June, compared to a profit of approximately RMB 7.3 million in the same period last year. This is mainly due to anticipated additional tax payments. The company's wholly-owned subsidiary, Langfang Wan Tong, received a tax notice indicating that the cemetery leasing and related services provided by Langfang Wan Tong from 2022 to 2024 do not qualify for the applicable conditions under the VAT tax exemption policy. Currently, it is estimated that Langfang Wan Tong will owe approximately RMB 11.6 million in additional taxes