DC HOLDINGS (00861) has announced that the group expects to report a profit attributable to equity shareholders for the year ending December 31, 2025, swinging from a loss to a profit. The projected profit is between RMB 20 million and RMB 40 million. This contrasts with the performance for the year ended December 31, 2024, which saw a loss of approximately RMB 254 million.
Based on currently available information, the group attributes the anticipated profit improvement primarily to two factors. Firstly, the group achieved operating revenue of RMB 16.657 billion in 2024. For 2025, a significant increase in revenue is expected due to higher business volumes. Secondly, in 2024, the group recognized a goodwill impairment loss of RMB 365 million related to its investment in a subsidiary, which performed below expectations. This impairment loss is projected to decrease substantially in 2025.