China Wantongyuan (06966) Fayingxi expects profit attributable to shareholders in the interim and total total revenue of about 1.32 million yuan to turn a year-on-year loss into a profit

Zhitong Finance App News, China Wantongyuan (06966) issued an announcement. According to the board of directors's preliminary review of the Group's comprehensive management accounts for the six months ended June 30, 2026 (which have not been reviewed or reviewed by an independent auditor and/or the Company's Audit Committee), and taking into account the information currently available to the board of directors, the Group expects to obtain the profit attributable to the owners of the Company and the total overall revenue of approximately RMB 1.32 million for the six-month period ending June 30, 2025 The loss was approximately RMB 9.39 million.

The expected conversion of losses into profits is mainly due to: (i) the increase in tax costs due to additional taxes due to revaluation of VAT rates in the same period last year, and this was a one-time event that did not affect profits and losses for the six-month period ending June 30, 2026; (ii) as the macroeconomic environment improved and market demand rebounded; (iii) the decline in the fair value of financial assets held at fair value, and no significant asset impairment losses were recorded during the six-month period ended June 30, 2026; and (iv) The Group continues to deepen the three-dimensional driving strategy of “deep geographical cultivation, cost efficiency and ecological construction”, actively optimizes operation management, effectively controls costs and increases overall gross profit margin.