Core Viewpoint - Metalight Inc. (元光科技, 02605.HK) has issued a profit warning for the first half of 2025, indicating a shift from profit to loss due to significant fair value losses related to convertible redeemable preferred shares prior to their conversion to ordinary shares [1] Financial Performance - The company expects to report a net loss under International Financial Reporting Standards (IFRS) for the first half of 2025 [1] - The anticipated adjusted net profit for the first half of 2025 is approximately RMB 27 million to RMB 30 million, showing an increase compared to RMB 26.87 million in the first half of 2024, driven by over 5% revenue growth [1] Business Operations - The board confirms that all business operations are proceeding as expected, with no significant adverse changes in business operations or financial conditions [1]

Core Viewpoint - METALIGHT, known as the "first stock of intelligent time-series data," experienced a significant drop of over 30% on its first day of trading in Hong Kong, leading to a substantial decrease in market value due to concerns over its business model and governance issues [1][2]. Financial Performance - The company reported cumulative losses exceeding 66 million yuan over three years, with a revenue structure heavily reliant on mobile advertising, accounting for 98% of total income [1][2]. - Revenue projections for 2022 to 2024 are 135 million yuan, 175 million yuan, and 206 million yuan, respectively, with a compound annual growth rate of 23.5%. However, net profits are projected to be negative at -20 million yuan, -20 million yuan, and -26 million yuan for the same period [2][5]. Revenue Structure - Mobile advertising revenue is projected to be 115 million yuan, 168 million yuan, and 202 million yuan from 2022 to 2024, representing 85.2%, 96.2%, and 98% of total revenue, respectively [2][18]. - The company faces high customer concentration, with revenue from the top five clients accounting for approximately 74.4%, 72.4%, and 68.2% of total revenue from 2022 to 2024 [3]. User Growth and Market Position - The "车来了" app has 298 million registered users as of 2024, with a monthly active user count of approximately 29 million, but the growth rate for new users has slowed significantly [4][5]. - The app's coverage has expanded to 466 cities, but the growth rate has decreased from 10.37% to 4.25% [5]. Competitive Landscape - METALIGHT is the third-largest public transport information service provider in China, with a market share of 9.6%, while competitors like Gaode Map and Baidu Map hold 20.4% and 12.4% market shares, respectively [15][16]. - The company faces competition from other specialized services and integrated platforms that offer more comprehensive solutions [16]. Management and Governance Issues - The founder, Shao Lingshuang, was convicted for illegally obtaining commercial data, raising concerns about corporate governance [1][11]. - The management structure has changed significantly, with the current CEO, Sun Xi, holding 21.15% of shares, while the founder's stake has decreased to 4.46% [13][14]. Investment and Funding History - The company has seen significant capital withdrawal from early investors, including a complete exit by Shunwei Capital prior to its IPO [12][13]. - The funding history includes investments from major players like Alibaba and Didi, but recent trends indicate a cautious approach from institutional investors [12][13]. Future Outlook - The reliance on a single revenue stream from mobile advertising poses risks, especially in a competitive and regulated environment [20]. - The company's ability to diversify its revenue and enhance its technological capabilities will be critical for future growth [19][20].