Baiwang Co., Ltd. (06657) is expected to have a net loss of about 25 million yuan to 45 million yuan year-on-year profit to loss

According to Zhitong Finance App News, Baiwang Co., Ltd. (06657) announced that the Group expects to record (1) total revenue of about RMB 290 million to RMB 310 million in the six months ending June 30, 2026, while total revenue for the same period in 2025 is RMB 348 million; (2) net loss is approximately RMB 25 million to RMB 45 million, while net profit for the same period in 2025 is RMB 3.6 million; and (3) adjusted net loss of approximately RMB 20 million to RMB 40 million for the same period in 2025 Adjusted net profit was RMB 4.6 million.

According to currently available data, the board of directors believes that the above changes are mainly due to: (1) the Group actively shrinks digital precision marketing services with low gross margins and further concentrates resources on core businesses such as digitalization of finance and taxation, artificial intelligence, and globalization. This adjustment had an impact on the Group's revenue during the reporting period. The Group made this adjustment with the aim of optimizing the revenue structure and resource allocation, and further concentrating resources on core business; (2) As artificial intelligence technology and vertical applications continue to develop, the Group continues to invest in the “Baibao” and “Fiscal Token Factory”, which are large models of fiscal and taxation. “Baibao” focuses on fiscal and taxation scenarios; the “Fiscal and Taxation Token Factory” transforms computing power, model reasoning, and application services into a schedulable, measurable, and deliverable token production and service system. Corresponding costs and expenses were generated during the reporting period, and the revenue contribution of related businesses was not fully reflected, which affected the Group's profits in stages during the reporting period; (3) The Group continued to invest in the TaxSwift overseas fiscal compliance and electronic invoicing platform in advance to seize the long-term opportunities brought about by corporate globalization and the digital demand for overseas compliance.

The above changes mainly reflect the Group's business adjustments and resource investment in response to business development and market conditions. The aim is to improve the degree of product standardization, the efficiency of large-scale reuse of artificial intelligence capabilities, and the share of recurring revenue, and support the medium- to long-term development of core businesses.