On August 20th, Jiayin Audio Holdings (06939.HK) announced that based on the preliminary assessment of the unaudited comprehensive management accounts of the Group for the six months ended June 30, 2024 ("Relevant Period") and other information currently available to the board of directors, it is expected that the net profit attributable to the owners of the company for the Relevant Period will decrease by approximately 94% to 99% compared to the same period in 2023.

The decrease in net profit attributable to the owners of the company for the Relevant Period is mainly due to the following factors: (i) despite a significant increase in sales volume of compatible printer consumable chips due to strong demand, the gross margin of compatible printer consumable chips decreased significantly due to intense competition in the industry during the Relevant Period; (ii) no revenue was recognized from chip technology and design services during the Relevant Period; (iii) the decrease in revenue from the sale of integrated circuits and other printer consumable components during the Relevant Period was mainly due to the tightening of credit controls by the Group; (iv) to strengthen the development of new business areas of the Group (such as IoT chips, online sales, etc.), marketing expenses increased, leading to an increase in sales and distribution expenses during the Relevant Period.