Duosang Yun (06696) issued a profit warning, with an expected annual loss attributable to shareholders of no less than RMB 185 million, turning from profit to loss year-on-year.

DuoXiang Yun (06696) announced that the Group is expected to incur a loss attributable to the company's shareholders of not less than RMB 185 million for the fiscal year 2024, while the shareholders' profit attributable to the company for the year ended December 31, 2023 is approximately RMB 30 million. The expected change is mainly due to the following reasons: provision for impairment of SaaS intangible assets of approximately RMB 100 million; increase in provision for impairment losses on trade receivables and financial assets measured at amortized cost by approximately RMB 64 million, mainly due to a significant increase in revenue for fiscal year 2024 and consequently an increase in trade receivables; increase in marketing and promotional expenses by approximately RMB 46 million; increase in administrative expenses by approximately RMB 13 million, with the increase in the aforementioned expenses partially offset by an increase in gross profit of approximately RMB 15 million.