*St Gaosheng (000971): Half Year Pre Loss Of 20 Million-35 Million Yuan

St Gaosheng (000971) announced on the evening of July 14 that the net loss attributable to shareholders of Listed Companies in the half year of 2021 is expected to be 20 million to 35 million yuan, and the profit in the same period of last year is 10.7531 million yuan.

The reasons for performance changes are as follows:

1. There is no significant change in the overall operation and financial status of the company. In the previous period, the company completed the deployment of new business segment in the reporting period, and new cost input was added in the reporting period; The company's virtual private network service is affected by policy and competition, and its market share is reduced. The above two factors led to the decrease of net profit in the reporting period.

2. The impact of non recurring profit and loss on the company's net profit is expected to be about 16 million yuan

1) the performance of Shanghai yingyue Network Technology Co., Ltd., a wholly-owned subsidiary of the company, failed to meet the commitment made at the time of acquisition in 2019. Due to changes in fair value and liquidated damages for delayed compensation of the shares, the net profit increased by about 14 million yuan during the reporting period due to the change of fair value and the delay in compensation of the shares.

2) the company has withdrawn the estimated liabilities due to the previous illegal joint borrowing, and the amount judged by the court during the reporting period is less than the accrued estimated liabilities. According to the judgment results, the company reversed the original multi accrued estimated liabilities, which affected the increase of net profit by about 2 million yuan.