The company has issued an announcement regarding its anticipated loss for the year ended December 31, 2024, and the key findings of an independent forensic investigation. Following the investigation's results and additional information obtained after March 24, 2025, which provided further evidence of conditions existing at the year-end, management has gained 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 now been revised. The group expects to report gross profit of approximately RMB 1.1 billion to RMB 1.3 billion and a net loss of approximately RMB 4.4 billion to RMB 4.8 billion for the year. This compares to a gross profit of about RMB 2.51 billion and a net profit of about RMB 7 million for the corresponding prior period.

These revisions are primarily attributed to the following factors: an additional impairment of approximately RMB 116 million required as of December 31, 2024, related to receivables for e-commerce and distribution services, based on the forensic findings and the latest recovery status; an additional impairment and write-down of approximately RMB 96 million required for trade receivables, prepayments, and other receivables as of December 31, 2024; and an additional recognition of approximately RMB 34 million in fair value losses and impairment for other financial assets held by the group as of December 31, 2024.