Baibang Co., Ltd. (06657.HK) releases positive financial results, expecting a mid-term net profit of approximately 3 million to 5 million yuan, turning losses into profits year-on-year.

Zhongtong Financial News App, Baowang Shares (06657.HK) announced that the group is expected to achieve the following: (1) total revenue for the six months ending June 30, 2025 is expected to be between RMB 330 million and RMB 380 million, compared to total revenue of RMB 282 million for the six months ending June 30, 2024. The group's current business includes artificial intelligence business and core business (including cloud-based financial and tax digital solutions, on-premise financial and tax digital solutions and data-driven analytical services). The group's total revenue includes AI business revenue of approximately RMB 58 million to RMB 63 million for the six months ending June 30, 2025, while AI business revenue for the six months ending June 30, 2024 is zero; (2) the gross profit margin for the six months ending June 30, 2025 is expected to be between 45.0% and 50.0%, compared to 39.2% for the six months ending June 30, 2024; and (3) net profit for the six months ending June 30, 2025 is expected to be between RMB 3 million and RMB 5 million, while the net loss for the six months ending June 30, 2024 was RMB 446 million. Based on currently available information, the board of directors believes that compared to the same period in 2024, the increase in total revenue is mainly due to the increase in revenue from AI business and financial and tax digital solutions; the rise in gross profit margin is mainly due to the company strategically reducing marketing efforts for low-margin business and saving sales costs through refined cost management; and the increase in net profit is mainly attributed to the increase in total revenue through the implementation of a scenario-based data intelligent strategy. In addition, the group achieved an expansion in gross profit margin, improvement in operational efficiency, and savings in operating expenses through refined operations. Additionally, as of the six months ending June 30, 2025, after the company's H-shares are listed on the main board of the Hong Kong Stock Exchange, the fair value of financial liabilities related to the issuance of preferred shares that are measured at fair value and their changes are recognized in profit or loss is zero.