Core Viewpoint - Feitian Cloud Movement (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 in 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] Impairment and Expenses - The company has increased impairment losses on trade receivables by up to 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 are expected to rise by approximately RMB 59.2 million, mainly due to increased marketing expenditures paid to third-party service providers, reflecting the company's efforts to enhance and promote its services and platform in the first half of 2025 [1]

Core Viewpoint - Feitian Cloud (06610.HK) announced a profit warning, expecting a loss of approximately 100 million to 130 million RMB for the mid-2025 period, a significant decline from a profit of about 63.5 million RMB in the same period of 2024 [1] Financial Performance - The expected 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 anticipated to decrease by approximately 108 million RMB compared to the same period in 2024 [1] - The impairment loss on trade receivables is expected to increase by no more than approximately 90 million RMB compared to the same period in 2024, following an internal assessment of the recoverability of these receivables [1] - Sales and distribution expenses are projected to increase by approximately 59.2 million RMB, primarily due to higher marketing expenses paid to third-party service providers [1]

Core Viewpoint - The company expects to report a significant loss for the mid-term of 2025, with estimated losses between RMB 100 million to RMB 130 million, a stark decline from a profit of approximately RMB 63.5 million in the same period of 2024 [1] Group 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, expected to decrease by approximately RMB 108 million compared to the mid-term of 2024 [1] - The impairment loss on trade receivables is expected to increase by no more than approximately RMB 90 million compared to the mid-term of 2024, following an internal assessment of the recoverability of these receivables [1] - Sales and distribution expenses are projected to rise by approximately RMB 59.2 million, primarily due to increased marketing expenses paid to third-party service providers, reflecting the company's efforts to enhance and promote its services and platform during the mid-term of 2025 [1]