Xuan Wu Cloud Technology Expects Increased Net Loss for First Half of 2025 Amid Regulatory Changes
Reuters
Aug 01
Xuan Wu Cloud Technology Expects Increased Net Loss for First Half of 2025 Amid Regulatory Changes
Xuan Wu Cloud Technology Holdings Ltd. has issued a profit warning, indicating an expected net loss of approximately RMB27.0 million to RMB31.0 million for the first half of 2025. This marks a significant increase compared to a net loss of approximately RMB6.1 million for the same period in 2024. The company attributes this anticipated increase in net loss to enhanced regulatory controls within the telecommunications industry, which have led to a decrease in sales volume of its CRM PaaS and certain CRM SaaS services. Despite these challenges, the company has been actively expanding its CRM SaaS services with a focus on higher-margin businesses, resulting in an improvement in the gross profit margin. Additionally, the company's operating cash flow is expected to turn positive in the first half of 2025. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the company.
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