Digital China Holdings Limited (the “Company”) disclosed that its indirect non-wholly owned subsidiary, Digital China Information Service Company Ltd. (DCITS, Stock Code: 000555 on the Shenzhen Stock Exchange), anticipates a profit attributable to its shareholders of between RMB46 million and RMB69 million for the year ended 31 December 2025. This forecast marks a reversal from a loss of approximately RMB524 million in 2024.
DCITS attributes this expected turnaround primarily to an active market expansion driving profit growth, improved receivables management resulting in lower impairment losses, and a significant reduction in goodwill impairment losses compared to 2024. DCITS, indirectly held as to approximately 38.61% by the Company, remains consolidated into the Company’s financial statements. The figures in DCITS’s preview were prepared under China Accounting Standards for Business Enterprises and have not yet been audited. The Company’s own results for the same period are expected to be released by the end of March 2026. Shareholders and investors are advised to exercise caution when dealing in the Company’s shares.