{Economic Information Agency, 21st exclusive} China Wantongyuan (06966) announced that the Group expects to record a profit attributable to owners of the Company and a total comprehensive income of approximately RMB 1.32 million for the six-month period ended June 30, 2026, compared to a loss attributable to owners of the Company of approximately RMB 9.39 million for the same period last year.

The Company expects to turn from loss to profit mainly due to: (i) higher tax costs arising from additional taxes due to the revaluation of VAT rates in the same period last year, which was a one-off event and did not affect the profit or loss for the six-month period ended June 30, 2026; (ii) improved macroeconomic environment and recovery in market demand leading to increased demand and volume in cemetery plot sales; (iii) a smaller decline in fair value of financial assets measured at fair value through profit or loss, and no significant long-term asset impairment losses recorded during the six-month period ended June 30, 2026; and (iv) the Group's continued deepening of the three-dimensional driving strategy of 'geographical deepening, cost optimization, and ecosystem building,' actively optimizing operations management, effectively controlling costs, and enhancing overall gross margin.

Interim results are expected to be published by the end of August 2026. (nw)