Chenqi Technology Limited Issues Positive Profit Alert: Significant Reduction in Net Loss and Substantial Revenue Growth for FY2025

Chenqi Technology Limited (Stock code: 9680), a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange, has released a significant positive profit alert for the fiscal year ended December 31, 2025. The company’s Board of Directors issued this announcement in accordance with the Listing Rules and the Inside Information Provisions, underscoring material developments that may have a substantial impact on the company’s share price.

Key Highlights from the Announcement

• Substantial Revenue Growth: The Group expects consolidated revenue for FY2025 to reach at least RMB5,000 million. This marks a dramatic increase of no less than RMB2,500 million, or at least 100%, compared to the prior year (FY2024).
• Sharp Reduction in Net Loss: The company anticipates a net loss attributable to equity shareholders of no more than RMB320 million for FY2025. This represents a significant reduction of at least RMB245 million, or a 43.4% decrease, compared to FY2024.

Factors Driving Revenue and Profitability Improvements

1. Ride-Hailing Services Surge: The number of orders for ride-hailing services within the Group’s mobility services segment saw a significant increase during the reporting period, leading to higher revenue compared to the previous year.
2. Growth in Technical Services: The Group intensified its sales and marketing efforts in its technical services segment, contributing to a robust rise in revenue.
3. Improved Operating Efficiency: The operating efficiency of the ride-hailing business improved, with cost structure optimization driving continuous gross profit growth.
4. Economies of Scale: The Group’s administrative expenses decreased, benefiting from economies of scale as the business expanded, which positively impacted the bottom line.
5. Financial Structure Optimization: Following the completion of the Company’s initial public offering (IPO), all convertible redeemable preferred shares and other financial liabilities issued to investors were converted into ordinary shares. This conversion eliminated the obligation to pay further interest on these instruments, significantly reducing finance costs during the reporting period.

Important Information for Shareholders and Potential Investors

• The financial figures disclosed are based on a preliminary review of unaudited consolidated management accounts for FY2025 and the information available to the Board as of the announcement date. These results have not yet been audited by the company’s auditors nor reviewed by the audit committee.
• Actual results may differ from these preliminary estimates. The audited results announcement is expected to be published by the end of March 2026.
• This update contains material inside information that may influence the company’s share price. Investors and shareholders are urged to exercise caution when dealing in the Company’s shares.

Board Composition Update

As of the date of this announcement, the Board comprises Mr. Jiang Hua (executive director); Mr. Gao Rui, Ms. Xiao Yan, Mr. Liang Weiqiang, Mr. Zhong Xiangping, and Ms. Bai Hui (non-executive directors); and Mr. Zhang Junyi, Mr. Zhang Senquan, and Mr. Li Maoxiang (independent non-executive directors).

Potential Impact on Share Price

The substantial increase in revenue combined with a sharp reduction in net loss signals a marked improvement in the company’s operational and financial health. Furthermore, the elimination of finance costs due to the conversion of preferred shares into ordinary shares is expected to strengthen profitability going forward. These developments are likely to be viewed favorably by the market and could have a positive impact on Chenqi Technology Limited’s share price.

Disclaimer: The information above is extracted and inferred from the company’s preliminary profit alert and is intended for informational purposes only. The figures are unaudited and may differ from finalized results. Investors are advised to refer to the company’s official results announcement when published and to exercise caution when dealing in the company’s shares. This article does not constitute investment advice.

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