NETJOY (02131) expects a net loss of approximately 440 million to 480 million yuan in 2024, compared to a profit.

NETJOY (02131) announced that the group is expected to incur a loss of no less than RMB 196 million for the year ending December 31, 2024, as well as the key findings related to an independent forensic investigation. Based on the findings of the forensic investigation and additional information obtained after March 24, 2025 (which provides more evidence of the situation existing at the end of that year), management now has a more comprehensive understanding of the situation as of December 31, 2024. The preliminary assessment of the group's unaudited consolidated management accounts for the year has been revised, with the group expecting to achieve a gross profit of approximately RMB 110 million to RMB 130 million and a net loss of approximately RMB 440 million to RMB 480 million for the year, compared to gross profit and net profit of approximately RMB 251 million and RMB 7 million, respectively, for the corresponding period. The revision is mainly due to the following reasons: Based on the findings of the forensic investigation and the latest collection status of related receivables for e-commerce and distribution services as of December 31, 2024, an additional impairment of approximately RMB 116 million is required; an additional impairment and provision of approximately RMB 96 million is required for trade receivables, prepayments, and other receivables as of December 31, 2024; and an additional fair value loss and impairment of approximately RMB 34 million is required for other financial assets held by the group as of December 31, 2024.