Impression Da Hong Pao(02695.HK)Profit Warning: Expected net profit in 2025 to decrease approximately 21.8% year-on-year

Gelonghui March 26 | Impression Da Hong Pao (02695.HK) announced that it expects the group to record a net profit attributable to shareholders of approximately 35.39 million yuan for the fiscal year 2025, a decrease of about 21.8% compared to the same period for the year ended December 31, 2024. The Board of Directors anticipates that this decline is primarily due to the following reasons:

To optimize the business structure, further broaden profit channels, and solidify the foundation for the company’s sustainable development, the company is actively promoting the expansion of business segments and the cultivation of new revenue growth points. In September 2024, the company strategically invested in and operated a new cultural tourism performance project “Moon Reflection Wuyi,” which officially premiered in May 2025. From May 1 to December 31, 2025, Moon Reflection Wuyi will have approximately 380 performances, with an audience of about 91,700 people, generating total revenue of approximately 11.81 million yuan. Benefiting from this, the group’s operating revenue for the fiscal year 2025 is expected to increase compared to the fiscal year 2024. At the same time, due to the operational patterns of the performance industry, significant upfront investment is required for project creation, venue construction, team building, and market promotion, leading to increased operating costs and other expenses. The increase in these operating costs and other expenses outpaces the increase in operating revenue, resulting in a decline in net profit attributable to shareholders.