FLOWING CLD-NEW (06610) has announced that the group expects to report a pre-tax loss of no less than approximately RMB 363 million for the fiscal year ending December 31, 2025. This represents a significant increase compared to the pre-tax loss of approximately RMB 44.85 million reported for the fiscal year ended December 31, 2024 (FY 2024).

The substantial rise in the pre-tax loss is primarily attributed to several key factors. These include a major increase in impairment losses related to trade receivables, amounting to no less than approximately RMB 110 million, which is an increase of no less than RMB 93 million from FY 2024. The final amount of these impairments will be determined following a comprehensive assessment of the recoverability of the receivables by an independent valuer in accordance with applicable accounting standards, and subsequent review by the company's auditor.

Furthermore, selling and distribution expenses increased to no less than approximately RMB 130 million, a rise of no less than RMB 42 million compared to FY 2024. This change is mainly due to increased marketing expenses with third-party service providers, reflecting the company's commitment to strengthening the launch and promotion of the group's services and platform.

Additionally, research and development expenditures saw a significant increase to no less than approximately RMB 230 million, up by no less than RMB 146 million from the previous fiscal year. This increase is largely attributable to substantially higher investments aimed at expanding the group's technical reserves across various R&D projects.