LESI GROUP (02540) issues profit warning, expected annual net profit to decrease significantly to not less than approximately 39 million yuan.

LESI GROUP (02540) announced that the net profit for the year ending December 31, 2025 is expected to decrease significantly to not less than RMB 39 million, compared to approximately RMB 73.2 million for the same period in 2024. The decrease in net profit is mainly attributed to: (i) a decrease in gross profit of approximately RMB 18 million, mainly due to changes in the rebate policy of media partners resulting in a decrease in rebate rate; (ii) expansion of sales and marketing departments leading to an increase in employee welfare expenses, thereby increasing sales and marketing expenses; and (iii) an increase in depreciation of the new office in Beijing Star Center, as well as an increase in operating personnel leading to an increase in employee welfare expenses, resulting in an increase in general and administrative expenses.