C Wan Tong Yuan (06966) issues profit warning, expecting shareholders' loss and comprehensive expenses for the year 2025 to be approximately 11 to 14 million RMB, turning from profit to loss year-on-year.

C Wan Tong Yuan (06966) announced that compared to the total net profit and comprehensive income attributable to owners of the companies for the year ended December 31, 2024 of approximately RMB 9.85 million, the group is expected to incur a total net loss and comprehensive expenses of between approximately RMB 11 million to RMB 14 million for the year ending December 31, 2025. The expected turnaround from profit to loss is mainly due to the impact of the macroeconomic environment and cautious consumer spending, a decrease in cemetery sales prices, a decrease in demand for funeral services, increased tax costs for the group's subsidiaries due to tax-related factors, including additional reassessment of value-added tax and surcharges paid and accrued for past periods after receiving notices from the tax authorities, as well as the application of different value-added tax rates for different services in funeral services, a decrease in the fair value of financial assets measured at fair value through profit or loss, and potential impairment of certain long-term assets. The expected loss for the year ending December 31, 2025 is primarily due to several non-recurring events, such as additional reassessment of value-added tax and surcharges paid and accrued for past periods after receiving notices from the tax authorities, a loss in fair value of financial assets, and potential impairment of certain long-term assets, which do not affect the main business and operations of the group. The group will continue to drive growth through "deepening geographical presence, lean cost structure, and ecological development," focusing on the development of the entire funeral industry chain and actively addressing challenges brought by changes in the macroeconomic environment and external factors. At the same time, the group will continue to optimize operations and management, maintain a stable cash flow and financial structure, and build a resilient, coordinated, and sustainable enterprise.