IMPRESSION DHP Issues Profit Warning, Forecasts 21.8% Drop in 2025 Net Profit

Stock News
03/26

IMPRESSION DHP (02695) has announced an expected net profit attributable to shareholders of approximately RMB 35.39 million for the fiscal year ending December 31, 2025. This represents a decrease of about 21.8% compared to the net profit reported for the fiscal year ending December 31, 2024.

The board attributes this anticipated decline primarily to the following factors. To optimize its business structure, broaden profit channels, and strengthen the foundation for sustainable development, the company has actively pursued business segment expansion and cultivated new revenue growth points. In September 2024, the company made a strategic investment and began operating a new cultural tourism performance project titled "Moon Over Wuyi," which officially premiered in May 2025. From May 1 to December 31, 2025, "Moon Over Wuyi" staged approximately 380 performances, attracting around 91,700 attendees and generating total revenue of about RMB 11.81 million. Benefiting from this new project, the company's operating revenue for the 2025 fiscal year increased compared to the 2024 fiscal year.

However, consistent with operational patterns in the performance industry, new projects require substantial upfront investment for production development, venue construction, team assembly, and market promotion, leading to an increase in operating costs and other expenses. The growth in these operating costs and other expenses outpaced the growth in operating revenue, resulting in the decline in net profit attributable to shareholders.

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