REGO INTERACT FY2025 revenue leaps 105.8% to RMB503.59 million; net loss widens on sharp margin compression

Bulletin Express
03/31

REGO INTERACT (Rego Interactive Co., Ltd) reported FY2025 revenue of RMB503.59 million, a 105.8% year-on-year increase, driven chiefly by a six-fold expansion in corporate digitalisation solutions. Despite the top-line surge, gross profit slipped 32.1% to RMB44.66 million and gross margin contracted to 8.9% from 26.9%, reflecting higher traffic acquisition costs and a shift in revenue mix toward lower-margin marketing services.

Net loss attributable to shareholders nearly doubled to RMB73.21 million, while adjusted net loss—excluding foreign-exchange movements, fair-value changes, goodwill impairment and other one-offs—rose 88.0% to RMB52.46 million. Loss before tax stood at RMB73.42 million, versus RMB37.85 million in FY2024.

Segment highlights • Corporate Digitalisation Solutions contributed 92.3% of group revenue, rising 116.2% to RMB464.71 million. Within the segment, enterprises’ private-domain traffic marketing services increased to RMB339.17 million (73.0% of segment total) on a sharp rebound in advertisement-placement income to RMB295.40 million. • Virtual goods sourcing and delivery revenue fell 73.5% to RMB10.64 million as clients trimmed marketing budgets. • Tangible goods sourcing was stable at RMB114.30 million, supported by broader SKU coverage across 1,664 brands. • Industry Digitalisation Solutions, centred on lottery systems, advanced 31.0% to RMB38.89 million, aided by contracts signed late FY2024 and FY2025 as well as the acquisition of Caipingfang Technology.

Cost and expense dynamics Total cost of sales climbed 156.7% to RMB458.93 million, outpacing revenue growth and eroding profitability. R&D spending was cut 35.8% to RMB15.56 million, and administrative expenses eased 9.2% to RMB31.63 million. Finance costs dipped 18.0% to RMB4.05 million following refinancing at lower effective rates. Other losses were inflated by an RMB8.68 million fair-value write-down on financial assets and an RMB11.98 million goodwill impairment.

Balance sheet and cash flow Cash and cash equivalents stood at RMB76.06 million (FY2024: RMB138.99 million). Interest-bearing borrowings increased to RMB124.84 million, lifting the gearing ratio to 46.0% (FY2024: 28.0%). Current and quick ratios both registered 2.1x, down from 2.7x a year earlier. Trade receivables declined to RMB76.61 million after RMB44.11 million in write-offs and a RMB26.83 million factoring arrangement.

Capital movements IPO proceeds of HK$100.70 million have been fully deployed, while HK$72.10 million of the HK$98.90 million raised via the December 2023 rights issue had been utilised by year-end. In January 2026, a placing of 160 million new shares generated net proceeds of approximately HK$68.60 million for debt reduction, business expansion and working-capital purposes.

Outlook Management plans to consolidate core operations, strengthen risk controls and accelerate commercialisation of AI-based lottery and sports solutions. Strategic priorities for 2026 include large-scale rollout of AI agents across lottery networks, monetisation of sports-related traffic amid global events such as the World Cup and Winter Olympics, and continued integration of virtual and physical goods supply chains. The group targets a return to operational profitability via cost optimisation and cross-segment synergies.

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