EASOU TECH Warns of Up to 59% Drop in Interim Net Profit

Stock News
Aug 25

EASOU TECH (02550) has issued a profit warning, projecting its net profit for the six months ending June 30, 2026, to be in the range of approximately RMB 4.2 million to RMB 4.6 million. This figure represents a year-on-year decline of roughly 55.1% to 59.0% compared to the net profit of approximately RMB 10.3 million recorded in the same period of the previous year.

In its official announcement, the company indicated that it anticipates revenue for the first half of 2026 to be between approximately RMB 405 million and RMB 420 million. This projection reflects an increase of approximately 5.9% to 9.9% from the revenue of about RMB 382 million reported for the six months ended June 30, 2025.

The growth in revenue is primarily attributed to the company's intensified efforts to expand its online game publishing services business. Conversely, the decrease in net profit is mainly due to two factors: increased sales and distribution expenses from ramping up game product promotion, and higher spending on artificial intelligence computing power.

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