FINGERTANGO Issues Profit Warning, Anticipates Shareholder Loss of Approximately RMB 35.3 Million for 2025

Stock News
Mar 26

FINGERTANGO (06860) has announced an expected shift to a net loss attributable to company owners of approximately RMB 35.3 million for the fiscal year ending December 31, 2025. This contrasts with a net profit of approximately RMB 32.8 million recorded in the same period of 2024. Based on currently available information, the projected loss is primarily attributed to several factors. Firstly, revenue for the 2025 reporting period decreased by approximately RMB 221 million, or 36.2%, compared to the previous year. This decline is mainly due to the natural reduction in income from classic games that have been online for many years and have reached a mature stage. Secondly, research and development expenses increased by approximately RMB 8.8 million, or 13.6%, reflecting the group's continued investment in enhancing its game development capabilities and product pipeline for sustainable long-term growth. Thirdly, other income, gains, and losses decreased by approximately RMB 13.9 million, or 40.6%. This reduction is primarily attributed to a decrease in interest income of about RMB 9 million, or 46.9%, and the absence of a significant reversal of impairment provisions on notes and other receivables of approximately RMB 12.1 million, which occurred in 2024. These decreases were partially offset by an increase in fair value gains on investments measured at fair value through profit or loss. The 2025 period recorded a gain of approximately RMB 11.6 million, compared to a loss of about RMB 2.3 million in the previous year.

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