C WAN TONG YUAN issued a profit warning, expecting a total mid-term loss of approximately 9 million to 10 million yuan, turning from profit to loss year-on-year
C WAN TONG YUAN issued a profit warning, expecting a mid-term loss of between 9 million and 10 million yuan for the period ending June 30, 2025, mainly due to macroeconomic impacts, cautious consumer spending, a decline in the average selling price of burial plots, and a decrease in demand for funeral services. Rising tax costs and a decline in the fair value of financial assets also contributed to the losses. The company will continue to optimize operational management, maintain a stable cash flow and financial structure, and actively respond to challenges
According to the announcement from C WAN TONG YUAN (06966), compared to the total profit and comprehensive income attributable to the owners of the company of approximately RMB 7.28 million for the six months ending June 30, 2024, the group expects to incur a total loss and comprehensive loss attributable to the owners of the company of approximately between RMB 9 million and RMB 10 million for the six months ending June 30, 2025.
The expected total loss and comprehensive loss attributable to the owners of the company is mainly due to the impact of the macro economy and cautious consumer spending, leading to a decrease in the unit price of cemetery sales, coupled with a decline in demand for funeral services resulting in decreased sales revenue; the company's subsidiaries have experienced an increase in tax costs due to tax factors, including additional reassessed value-added tax and surcharges paid for prior periods after notifications were issued by tax authorities; and a decrease in the fair value of financial assets measured at fair value through profit or loss.
The losses for this reporting period are primarily due to the increase in tax costs and impairment of the fair value of financial assets, which are two one-time events and do not affect the operation of the group's main business. The group will continue to actively respond to the challenges posed by the macro economy through a three-dimensional drive of "geographical deepening, cost efficiency, and ecological construction," focusing on the development of the entire funeral industry chain. At the same time, the group will continue to optimize operational management and maintain a robust cash flow and financial structure, building a stable, coordinated, and sustainable enterprise
