Bairongyun-W (06608) issued a profit warning. Net loss for the medium term is expected to be 320 million yuan to 360 million yuan year-on-year profit and loss

According to Zhitong Finance App, Bairongyun-W (06608) announced that the Group expects to achieve an unaudited net loss of between RMB 320 million and RMB 360 million in the six months ending June 30, 2026 (reporting period), from profit to loss compared with unaudited net profit (approximately RMB 201 million) for the six months ended June 30, 2025.

The Group is in a strategic transformation stage where artificial intelligence (AI) technology drives the expansion of the customer structure to new scenarios, and new businesses have made significant progress during the reporting period. However, some mature credit industry customers took the initiative to suspend the operation of some products in order to comply with regulatory requirements, causing the Group's related mature business revenue to drop sharply, putting a lot of pressure on the overall performance during the reporting period.

Profit changes during the reporting period were mainly due to the implementation of regulatory regulations such as the “Notice on Strengthening the Management of Commercial Banks' Internet Loan Assistance Business and Improving the Quality and Efficiency of Financial Services” issued in April 2025 and the “Administrative Measures on the Internet Marketing of Financial Products” issued in April 2026. Credit customers in some mature businesses of the Group voluntarily suspended the operation of related products, which led to a sharp drop in the Group's related business revenue;

ii. During the reporting period, revenue from new businesses (AICC business) based on the AICC (intelligent communication) technology exhibition industry, which was not affected by the above regulations, increased significantly. Among them, new businesses serving customers in new scenarios showed significant growth, demonstrating the Group's ability to implement AICC technology in new scenarios. However, during the reporting period, new business growth has not fully covered the gap of declining revenue from mature businesses; and

iii. The Group's gross profit declined during the reporting period compared to the same period last year due to a decline in revenue and share of mature businesses with relatively high gross margins. On the cost side, despite a sharp year-on-year decline in sales expenses, the Group continued to increase R&D investment in the field of artificial intelligence, and overall costs declined only slightly.

In summary, the Group achieved phased results in the active transformation of its customer structure. However, due to the decline in both revenue and gross profit during the reporting period, and the decline in expenses was relatively limited, the Group achieved a large amount of net loss.

Although the Group recorded a large amount of unaudited net loss during the reporting period, the Group currently has relatively stable cash reserves and no interest-bearing liabilities. The Group is releasing mature business resources (including communication lines, computing power, etc.) in an orderly manner, and maintaining a prudent pace of investment in new businesses. The existing cash reserves are sufficient to support continued operation needs.

After the reporting period, the Group's cross-scenario customer expansion continued to make progress, and has recently achieved substantial implementation with benchmark customers in new scenarios such as logistics. The Board believes that the continued deepening of the above strategic transformation and the Group's continued investment in artificial intelligence technology research and development will benefit the Group's long-term sustainable value growth.