Paradise Entertainment Limited (01180.HK) issued a profit warning, projecting net profit of approximately HK$139.40 million for the year ended 31 December 2025, down 63.50% or HK$242.50 million from the HK$381.90 million recorded in 2024.

Key factors behind the deterioration are as follows:

1. Casino Management Services Contraction • Revenue from Macau casino management services is expected to fall by HK$85.20 million, an 11.90% year-on-year decline. • The non-renewal of the Service Agreement with SJM Resorts, Limited led to the termination of operations at Casino Kam Pek Paradise on 2 December 2025, eliminating nearly one month of anticipated income for the reporting year.

2. Electronic Gaming Equipment Slowdown • Sales and leasing revenue of electronic gaming equipment and systems is forecast to drop by HK$165.50 million, a 45.30% decline versus 2024. • Demand for live multi-game (LMG) terminals weakened as clients deferred purchases ahead of the scheduled 2026 launch of the upgraded “Black Coral” LMG system. No revenue from the new system has yet been recognised.

3. One-Off Cessation Costs • The early closure of Casino Kam Pek Paradise prompted a payment of HK$42.10 million for employee compensation and reimbursements to SJM Resorts, which will be expensed in the 2025 accounts.

The company is finalising its audited results, scheduled for release by end-March 2026. Investors are advised to exercise caution when dealing in Paradise Entertainment’s shares until the final figures are confirmed.