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Jinshan Software issued a profit warning for Xunlei and 21Vianet, with an impairment of nearly 1 billion yuan

  

Jinshan Software issued a profit warning. In 2014, the Group successively bought shares of Xunlei and 21Vianet, with a total investment of more than 2 billion yuan; Due to the provision of US $125 million (about HK $975 million) for the impairment of the book value of Xunlei and 21Vianet's investments, it is expected to generate losses in the interim as of the end of June. Jinshan Software recorded a profit of 208.5 million yuan last year.

The company stressed that the relevant provisions are accounting related adjustments and non cash items, so they will not have any impact on the cash flow of the group. The Group continues to maintain a healthy net cash balance.

Although the first quarter performance announced by Jinshan Software in May earned 16.8% to 134 million yuan more annually, the performance of Cheetah Mobile, which accounted for 62% of the revenue, was worse than expected, and the net profit fell 65% to 10.7 million yuan. Chairman Lei Jun pointed out that Kingsoft's operating profit may face pressure in the coming quarters, and it is expected that this year's operating profit rate may be similar to that of 2015.