Flowing Cloud Technology (6610) H2 2025 earnings summary

Executive summary

• FY2025 revenue declined 21.2% YoY to RMB783.9m; the loss widened to RMB365.6m from RMB43.7m, reflecting lower sales and gross margin, higher R&D and selling costs, and a substantial receivables impairment.

• Strategic focus shifted toward AI-XR solutions, 3D AIGC, digital humans and scalable platform services, alongside reduced low-margin integrated marketing activity.

Financial highlights

• Revenue was RMB783.90m, down 21.2% YoY; gross profit was RMB152.32m, down 23.9%.

• Loss before tax was RMB365.57m versus RMB44.85m; net loss was RMB365.62m versus RMB43.70m.

• Total comprehensive expense reached RMB414.87m versus RMB81.66m, including a RMB48.63m fair-value loss on FVTOCI equity investments.

• Basic and diluted loss per share was RMB3.43 versus RMB0.48 restated, reflecting the December 2025 share consolidation.

Outlook and guidance

• 2026 priorities include higher R&D investment in AI-XR convergence, improving AIGC efficiency in 3D content creation, reducing production costs, and scaling digital humans and digital assets.

• Strategy targets deeper integration of spatial computing with the real economy and broader commercialisation of AI and XR digital solutions; no numerical financial guidance was stated.