MANY IDEA CLOUD (06696) announced that the group expects to record a net loss of at least RMB 60 million for the first half of 2025, compared to a net profit of approximately RMB 7.2 million for the first half of 2024.

The board of directors believes that the expected net loss is primarily attributable to the following reasons, including: (i) a decrease in gross profit during the period, mainly due to increased sales costs; (ii) an increase in administrative expenses including research and development expenditures; and (iii) an increase in provision for impairment losses on trade receivables and other financial assets due to increased revenue and corresponding trade receivables.