DEEWIN (02418) announced that the group expects its net profit for the fiscal year ending December 31, 2025, to be approximately RMB 45 million to RMB 55 million. This represents a significant decrease of about 65% to 71% compared to the net profit recorded for the year ending December 31, 2024. The group's net profit for the 2024 fiscal year was RMB 157 million.

The anticipated decline in net profit is primarily attributed to two key factors. Firstly, intensified competition within China's domestic financial leasing industry and supply chain logistics sector during 2025 has prompted the group to increase investments in commercial policies to enhance its competitiveness, leading to higher business costs and an overall reduction in business gross profit margins compared to the previous year. Secondly, in response to evolving market-wide risks and exercising prudent financial management, the group has appropriately raised the general provision ratio for accounts receivable and increased credit impairment provisions for certain individual clients, which has consequently impacted the group's overall profit performance.