CMGE (00302) has announced that the group expects to record a net loss not exceeding RMB 1.5 billion for the fiscal year ending December 31, 2025. This compares to a net loss of approximately RMB 2.1 billion for the fiscal year ended December 31, 2024. The improvement in the group's performance is primarily attributed to a reduction in non-operating other expenses, which decreased from about RMB 1.7 billion in the 2024 fiscal year to an estimated RMB 1.1 billion in the 2025 fiscal year. This decrease is mainly due to the following factors: (i) A significant reduction in the goodwill impairment expected for the cash-generating unit of the company's subsidiary, Beijing Wenmai Interactive Technology Co., Ltd. (Wenmai Interactive), for the 2025 fiscal year compared to the 2024 fiscal year. For the 2024 fiscal year, the revenue growth rate used in the cash flow forecasts for the goodwill impairment test of Wenmai Interactive's cash-generating unit was substantially lowered to a range of 2% to 157%, based on the actual revenue for the relevant fiscal year and projected annual revenues for the next five years (compared to a range of 16% to 213% for the fiscal year ended December 31, 2023), leading to a substantial goodwill impairment for the cash-generating unit in 2024. (ii) Although the amount of prepayments written off is expected to increase in the 2025 fiscal year compared to 2024, a reduction in the impairment of other intangible assets—such as intellectual property licenses (IP licenses), content provider licenses (CP licenses), and research and development expenditures—is anticipated to offset the overall asset impairment for the 2025 fiscal year. (iii) A decrease in the fair value loss on financial assets measured at fair value through profit or loss is projected for the 2025 fiscal year. The group fully recognized fair value losses for certain investee enterprises facing operational difficulties, resulting in significant fair value losses during the 2024 fiscal year. Furthermore, an improvement in the investment environment during the 2025 fiscal year is also expected to reduce the fair value losses on the group's financial assets measured at fair value.