Limeng Technology (02405) expects medium-term equity shareholders to account for a loss of about US$1.4 million to US$1.6 million

Zhitong Finance App News, Limeng Technology (02405) issued an announcement. According to a preliminary assessment of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 (this period) and the information currently available to the board of directors, the Group expects revenue of about 700,000 US dollars to 800,000 US dollars for the current period, while the revenue for the six months ended June 30, 2025 is 3.3 million US dollars; and the loss due to shareholders of the company's equity shareholders in the six months ending June 30, 2025 is about 380 million US dollars $10,000.

Following the sale of Limeng Media Group Co., Ltd. in July 2025, the Group has gradually reduced the scale of providing standardized cross-border digital marketing services and has stopped providing such services for six months ending June 30, 2026.

Furthermore, given the severe market conditions, evolving industry dynamics, and the need to allocate resources more efficiently, the Group has decided to integrate its customized digital marketing services with its SaaS-based digital marketing services.

As (i) standardized digital marketing services have been terminated; (ii) the Group's digital marketing services have been integrated; and (iii) the digital marketing services industry is facing severe market conditions, the Group expects to achieve a significant decrease in revenue for the current period compared to the six months ended June 30, 2025.

After the sale, trade receivables and trade payables have been drastically reduced, which has significantly improved the Group's working capital situation and reduced credit risk due to marketers' default. This move also led to a sharp reduction in expected credit losses on trade receivables, which led to a significant reduction in losses attributable to the company's equity shareholders during the current period compared to the six-month forecast ending June 30, 2025.

Based on the existing Adorado and Powershopy platforms, the Group has developed PowerTokens, an exclusive one-stop SaaS solution platform that aims to serve as a centralized marketplace to bring together large-scale language models (LLMs) and artificial intelligence (AI) capabilities developed in mainland China, and enable developers and enterprises around the world to use these resources. PowerTokens aims to provide global developers, content creators, SaaS companies and enterprise customers with unified AI model access, account management, usage metering, billing management and related technical services. PowerTokens has now launched external marketing, user recruitment, and early commercialization activities.