Core Viewpoint - Feitian Cloud (6610.HK) is expected to report a significant loss of approximately RMB 100 million to RMB 130 million for the first half of 2025, a sharp decline from a profit of approximately RMB 63.5 million in the same period of 2024 [1] Financial Performance - The anticipated loss is primarily attributed to a decrease in gross profit, mainly due to a decline in revenue from the augmented reality and virtual reality (AR/VR) marketing services, which is expected to decrease by approximately RMB 108 million compared to the first half of 2024 [1] - The impairment loss on trade receivables is expected to increase by no more than approximately RMB 90 million compared to the first half of 2024, following an internal assessment of the recoverability of these receivables [1] - Sales and distribution expenses are projected to increase by approximately RMB 59.2 million, primarily due to higher marketing expenses paid to third-party service providers, reflecting the company's intensified efforts to launch and promote its services and platforms during the first half of 2025 [1]

Core Viewpoint - Feitian Yundong (06610) issued a profit warning, expecting a significant loss in the first half of 2025, leading to a nearly 11% drop in stock price [1] Financial Performance - The company anticipates a loss attributable to equity holders of approximately RMB 100 million to 130 million for the first half of 2025, a substantial decline from a profit of approximately RMB 63.5 million in the same period of 2024 [1] - The expected decline in performance is primarily due to a decrease in gross profit, with revenue from augmented reality and virtual reality (AR/VR) marketing services projected to drop by approximately RMB 108.2 million compared to the mid-2024 period [1] Expense Analysis - The company has increased impairment losses on trade receivables by no more than approximately RMB 90 million compared to the mid-2024 period, following an internal assessment of the recoverability of these receivables [1] - Sales and distribution expenses have risen by approximately RMB 59.2 million, mainly due to increased marketing expenditures paid to third-party service providers, reflecting the company's intensified efforts to launch and promote its services and platforms during the first half of 2025 [1]