Flowing Cloud Technology (6610) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 14.9% YoY to RMB381.3m; gross profit declined 35.6% to RMB80.7m, and the period swung from a RMB63.5m profit to a RMB123.5m net loss.

• Weaker AR & VR marketing demand, margin compression, an RMB85.1m receivables impairment charge, higher selling costs and increased R&D expenses weighed on results.

Financial highlights

• Revenue was RMB381.3m, down 14.9% YoY; gross profit was RMB80.7m, down 35.6%.

• Loss before tax was RMB135.9m versus profit before tax of RMB74.4m; net loss was RMB123.5m versus net profit of RMB63.5m.

• Total comprehensive expense was RMB130.2m versus income of RMB45.1m; basic and diluted loss per share was RMB6.53 cents versus earnings of RMB3.51 cents.

• Operating cash outflow was RMB172.8m, investing cash outflow RMB45.2m and financing cash inflow RMB77.6m.

Outlook and guidance

• H2 priorities include deeper AI and AR & VR/MR integration, wider industry applications, more efficient digital-content production and improved service quality.

• Plans include expanding cooperation with governments, scenic areas, educational institutions and businesses to develop digital products and services.