BRIGHT FUTURE (01351) issues profit warning, expected shareholders' share of loss in 2025 is not less than approximately 50 million yuan.

BRIGHT FUTURE (01351) announced that the group expects to incur a loss attributable to owners of the company of not less than approximately RMB 50 million for the year ending December 31, 2025, compared to a loss of approximately RMB 6.49 million for the year ending December 31, 2024. The board believes that the expected loss for the year 2025 will increase compared to 2024, mainly due to (i) an increase in advertising costs driven by changes in the economic environment and advertising platform policies, leading to a decrease in gross profit; (ii) termination of business with a customer and recognition of impairment losses on financial assets, resulting in an increase in expected credit losses on trade and other receivables; (iii) granting of stock awards to eligible employees under the stock incentive plan during the reporting period (purchased back in previous years), leading to an increase in stock-based compensation expenses. The group will strengthen the management of trade receivables, continue to optimize its resource allocation, and improve its profitability.