STARPLUS LEGEND (06683) issued a profit warning, expecting a comprehensive loss of not more than 52 million yuan in 2025.

STARPLUS LEGEND (06683) announces that the group expects to incur a comprehensive loss of no more than RMB 52 million for the year ending December 31, 2025, while it achieved a comprehensive profit of RMB 50.2 million for the year ending December 31, 2024. The board of directors believes that the main reason for the turnaround from profit to loss this year is due to (1) a temporary adjustment in the group's business structure and product mix. The pace of IP content development has slowed compared to the same period last year, which has had a temporary impact on the performance of the IP creation and operation division; and the gross profit margin of new consumer businesses has decreased compared to the same period last year as they continue to expand their product types and sales channels; (2) the group, based on cautious principles and taking into account recent changes in geopolitical situations, made provisions for impairment of certain receivables. This impairment mainly consists of non-cash adjustments made for accounting purposes, with no significant adverse impact on the group's overall cash flow situation. Furthermore, the group is currently in an important stage of business structure and strategic upgrade. This year, the group has made continuous investments in resource allocation and business ecosystem development, including advancing strategic partnerships and resource allocation related to IP creation and operation, exploring innovative models combining AI and Siasun Robot & Automation technology with popular IP scenes, and continuously improving IP commercialization and new consumer channel networks. By optimizing the business structure, strengthening cost and risk management measures, the group aims to drive stable business development. The board of directors believes that despite the temporary impact on this year's performance, the overall operation of the group remains normal and core business layout continues to progress, with related investments being high barrier strategic assets, laying the foundation for the group's future business development.