Core Viewpoint - Huamei Holdings (000607) expects a net loss attributable to shareholders ranging from 46.5 million to 60 million yuan for the period from January 1, 2025, to June 30, 2025, representing a decline of 312.82% to 374.61% compared to the same period last year [1] Financial Performance - The net profit after deducting non-recurring gains and losses is projected to be a loss of 61.5 million to 75 million yuan, reflecting a decrease of 556.69% to 656.94% year-on-year [1] - Basic earnings per share are expected to be a loss of 0.0457 to 0.059 yuan per share [1] Business Segment Performance - Revenue from advertising and planning, as well as newspaper distribution, has declined during the reporting period [1] - There has been an increase in credit impairment losses related to accounts receivable and other receivables compared to the same period last year [1] Non-recurring Gains and Losses - The impact of non-recurring gains and losses on net profit is estimated to be between 15 million to 20 million yuan [1]

Group 1: Financial Performance - In 2024, the company's reported industry revenue was 85.01 million, a year-on-year decrease of 23.4% [2] - The printing business revenue for 2024 was 53.33 million, with non-newspaper revenue accounting for 74.13% [3] - The advertising and planning business revenue was 78.6 million, down 23.13% year-on-year [5] Group 2: Business Strategy and Adjustments - The company is focusing on non-paper media businesses, including education, exhibitions, outdoor advertising, and parks, to offset traditional media revenue declines [2] - Measures to enhance overall profitability include stabilizing core businesses, transforming and upgrading operations, and shutting down inefficient small enterprises [3] - The company has increased R&D investment in printing technology to enhance automation and efficiency [4] Group 3: Market and Competition - The education business revenue decreased by 10.45% year-on-year, attributed to macroeconomic slowdown, population decline, and policy adjustments in the education sector [3] - The company has introduced seven new international education projects in 2024 [4] - The company is actively embracing AI technology across content production, distribution, and media products to improve efficiency [5] Group 4: Operational Metrics - R&D investment in 2024 was 12.65 million, a decrease of 19.73% year-on-year [5] - The company’s expense ratio for 2024 was 20.65%, an increase of 5.48 percentage points year-on-year [5] - The comprehensive gross margin for 2024 was 22.01%, up 5.88 percentage points, while the net profit margin was -0.56% due to increased asset impairment losses [5] Group 5: Future Outlook - The company’s major business area remains stable, with over 70% of revenue coming from within Zhejiang Province [5] - The controlling shareholder executed a stock buyback plan in February 2024, acquiring 15,234,872 shares, amounting to over 60 million [4] - The company is committed to optimizing business structure and enhancing cost control to improve performance [5]