Runge Interactive (02422) made a profit. It is expected that net profit after tax for the medium term will be no less than 2.3 million yuan, turning a year-on-year loss into a profit

Zhitong Finance App News, Runge Interactive (02422) announced that the Group expects to obtain net profit after tax of not less than RMB 2.3 million for the six months ending June 30, 2026, compared with net loss after tax of about RMB 20.8 million for the six months ending June 30, 2025. The Group also anticipates achieving adjusted net profit (defined as profit for the period/(loss) adjusted for exchange differences and changes in fair value of financial assets that account for profit and loss at fair value) of not less than RMB 1.7 million for the six months ended June 30, 2026, compared with an adjusted net loss of approximately RMB 19.1 million for the six months ended June 30, 2025.

The Board believes that the main reason for turning a loss into profit is: (i) in view of the uncertain market environment, the Group continued its prudent policy in selecting high-quality customers to manage credit risk exposure while strengthening the collection of trade receivables; (ii) in order to promote the Group's long-term growth and enhance operational resilience, the Group has taken active steps to optimize the cost structure to maintain flexibility, protect core business investments, and create long-term value for stakeholders; and (iii) through the completion of the sale of subsidiaries in December 2025 (details are provided in the Company on December 22, 2025) Announcement), the Group successfully reduced the Group's cost base. Through these strategic cost cuts, the Group can turn capital into growth opportunities with higher return on investment.