NEWBORNTOWN (09911.HK) issued a profit warning, expecting the company's attributable profit for the fiscal year 2024 to be between 0.46 billion to 0.5 billion RMB, a year-on-year decrease of 2.5%-10.3%. Excluding the one-time investment income of 0.16 billion RMB from the acquisition of Chizicheng Strategy completed in the third quarter of 2023, the company's attributable profit for the year would grow by 29.9%-41.2%. This is mainly driven by the group leveraging AI technology to promote rapid growth in diversified social products, as well as the inclusion of Bluetopia Holdings and Land of Glory into the group's financial statements; the adjusted EBITDA is expected to increase by 40.7%-46.7%, reaching between 0.95 billion to 0.99 billion RMB.

Total revenue for the year is expected to be between 5 billion to 5.2 billion RMB, an increase of 51.1%-57.2% year-on-year; net profit is expected to be between 0.77 billion to 0.81 billion RMB, an increase of 1.2%-6.4%.