According to the preliminary evaluation of the unaudited comprehensive management account of the group as of June 30, 2024, compared with the net loss of approximately RMB 3.3 million recorded for the six months ended June 30, 2023, the group is expected to record a net loss of approximately RMB 2 million to RMB 2.5 million.
The board of directors believes that the main reasons for the above changes are as follows: (I) the revenue from driving training services for large vehicles has decreased due to the continued tension in the Sino-US trade relations, which has led to the market situation in the logistics industry continuing to deteriorate, and the threshold for small existing driving schools to enter the driving training service industry for large vehicles has been lowered, intensifying the fierce competition in the driving training service market, resulting in a decrease in the number of students attending driving courses (especially for large vehicles), and a decrease in the actual training hours provided by the group for large vehicles; (II) both the gross profit and gross profit margin of the group's large vehicle driving training service business have declined, mainly due to the aforementioned reduction in the number of students attending large vehicle driving courses and actual training hours, as well as the fixed depreciation costs of training venues and training vehicles, and the amortization costs of rights to use assets; and (III) part of the aforementioned reduction is offset by the income tax offset confirmed for the six months ended June 30, 2024, while the income tax expenses recognized for the six months ended June 30, 2023 are due to the excess provision for income tax in previous years.
