C WAN TONG YUAN (06966) issues a profit warning, expecting a mid-term profit attributable to shareholders and total comprehensive income of approximately 1.32 million yuan, turning a profit compared to a loss in the same period last year.

C WAN TONG YUAN (06966) announced that, based on the Board's preliminary review of the consolidated management accounts for the six months ended June 30, 2026 (not yet reviewed or audited by independent auditors and/or the company's audit committee) and taking into account the information currently available to the Board, the Group expects to achieve a profit attributable to owners of the Company and a total comprehensive income of approximately RMB 1.32 million for the six months ended June 30, 2026, compared to a loss attributable to owners of the Company of approximately RMB 9.39 million for the six months ended June 30, 2025. The expected turnaround from a loss to a profit is mainly due to: (i) the increase in tax costs last year due to additional taxes arising from the revaluation of the VAT rate, which was a one-time event and did not impact the profit and loss during the six months ended June 30, 2026; (ii) an increase in demand and quantity of cemetery sales as the macroeconomic environment improves and market demand rebounds; (iii) a decrease in the extent of fair value decline of financial assets measured at fair value through profit or loss, and no significant impairment loss on long-term assets was recognized during the six months ended June 30, 2026; and (iv) the Group's continued deepening of the "geographic cultivation, lean cost management, and ecological construction" three-dimensional driving strategy, actively optimizing operational management, effectively controlling costs, and enhancing the overall gross profit margin.