LUDASHI (03601) issues profit warning, expecting a decrease of approximately 40% to 50% in the mid-term net profit compared to last year.

LUDASHI (03601) announced that the net profit of the group for the six months ending on June 30, 2025 is expected to decrease by approximately 40% to 50% compared to the same period in 2024, amounting to RMB 21.9 million. The expected decrease in net profit for the period is mainly attributed to the following factors: (1) The group's exclusive licensed online gaming business, which is a significant source of profit, experienced a significant decline in profit contributions during the period. This business mainly relies on three online gaming products developed based on well-known intellectual property. As these online games have been in operation for the second to fourth year and have reached maturity, the user engagement and willingness to pay naturally declined, leading to a decrease in revenue and profit for this business; (2) During the period, the group is still searching for new online games with significant market impact and good user feedback to effectively compensate for the revenue gap caused by the decline in mature online gaming product lifecycle.