Gelonghui, March 5 | Runge Interactive (02422.HK) announced that the company expects to record net profit after tax of not less than RMB 5,800,000 for the year ending December 31, 2023, a decrease of 91.5% over the previous year. The Group also expects to record an adjusted net profit of not less than RMB 15,000,000 for the year, a year-on-year decrease of 81.5%.

The Board of Directors believes that this is mainly due to: (i) the decline in revenue from advertising services and advertising distribution services. The Chinese consumer market climate has been negatively affected by various uncertainties, leading to a reduction in customer marketing budgets and a decline in the overall level of advertising. As competition in the industry intensified, the Group's profitability was adversely affected to a certain extent; (ii) in view of the uncertain market environment, the Group adopted a more prudent policy in selecting customers to obtain high-quality customers; (iii) the impact of new administrative expenses and reduced government subsidies; and (iv) the increase in fair value losses on the Group's financial assets, mainly due to the fact that some of the subscribed financial products were not paid.