China Wangwang (00151) Fa Ying Alert expects the profit attributable to the company's equity holders to drop by about 38% year-on-year in the first quarter

Zhitong Finance App News, China Wangwang (00151) announced that the Group expects (i) earnings for the three months ended June 30, 2026 to fall by about 6% compared to the same period of the previous fiscal year, mainly due to a weakening market atmosphere; and (ii) mainly due to declining earnings but rising operating expenses, the profit attributable to the company's equity holders for the three months ended June 30, 2026 will decrease by about 38% compared to the same period of the previous fiscal year. If these trends continue without significant changes, the company expects its interim results for the six months ending September 30, 2026 to be adversely affected.

According to the announcement, continuing the trend mentioned in the company's 2025/2026 annual report, traditional wholesale channels, which account for more than half of the Group's total revenue, have been negatively affected by the slowdown in terminal sales since fiscal year 2026 (April 1, 2026). Dealers have faced operational challenges, putting pressure on some of the Group's main products. As a result, revenue from traditional wholesale channels for the three months ended June 30, 2026 declined by double digits compared to the same period of the previous fiscal year. At the same time, operating expenses for the three months ending June 30, 2026 continued to rise compared to the same period of the previous fiscal year due to the addition of new channels and new products after the establishment of divisions in various product categories, and the increase reached a high number of units. The Group will continue to optimize its internal organization and adopt measures to control the effectiveness of operating expenses. At the same time, the Group will (i) sort out and differentiate products sold through different sales channels; (ii) provide dealers with new products with high profit margins and assist dealers in developing and developing markets with relevant supporting measures; and (iii) optimizing dealer incentive policies to encourage dealers and enhance their willingness to sell the Group's products, thereby enhancing the momentum for sustainable growth.