CHENQI TECH (09680) Anticipates Annual Net Loss Attributable to Shareholders Not Exceeding RMB320 Million, Narrowing by at Least 43.4% Year-on-Year

CHENQI TECH (09680) has announced that the Group expects to achieve (i) consolidated revenue of no less than RMB5 billion for the fiscal year ending December 31, 2025, representing a substantial increase of no less than RMB2.5 billion compared to the fiscal year ending December 31, 2024, with a growth rate of no less than 100%; and (ii) a net consolidated loss attributable to the company's equity shareholders of no more than RMB320 million for the fiscal year ending December 31, 2025, indicating a significant reduction of no less than RMB245 million compared to the loss recorded for the fiscal year ending December 31, 2024, a decrease of no less than 43.4%.

Based on information currently available to the Board, the increase in the Group's revenue is primarily attributed to the following factors: (1) During the reporting period, the Group's ride-hailing service order volume within its mobility services segment experienced significant growth, leading to increased revenue compared to the fiscal year ending December 31, 2024; and (2) During the reporting period, the Group intensified sales and marketing efforts for its technical services, resulting in increased revenue compared to the fiscal year ending December 31, 2024.

According to the information currently available to the Board, the reduction in the Group's net loss during the reporting period is mainly due to the following factors: (1) During the reporting period, the operational efficiency of the Group's ride-hailing service within its mobility services segment improved, and the cost structure was optimized, leading to sustained gross profit growth compared to the fiscal year ending December 31, 2024; (2) During the reporting period, the business volume of the Group's technical services increased, resulting in corresponding growth in gross profit compared to the fiscal year ending December 31, 2024; (3) During the reporting period, the Group's administrative expenses decreased due to economies of scale resulting from business expansion; and (4) Following the company's initial public offering, the convertible redeemable preferred shares and other financial liabilities issued by the Group to investors were converted into ordinary shares, thereby eliminating the company's obligation to pay further interest on such instruments during the reporting period, leading to a reduction in financial costs.