Fire Rock Holdings Limited Issues Significant Profit Warning for FY2025

Key Highlights from the Profit Warning Announcement

• Expected Substantial Increase in Losses:
  Fire Rock Holdings Limited (“the Company”) has announced that it anticipates a significant widening of its losses for the financial year ended 31 December 2025. The Company expects to record a loss attributable to shareholders of approximately HK\$65.0 million for the period, compared to a loss of HK\$17.1 million for the previous year (2024).
• Primary Reasons for Deterioration:
  The Board attributes this sharp decline in financial performance to several key factors:
  • Impairment Losses on Intangible Assets: The Company made provisions for impairment losses on certain game-related intangible assets due to uncertainty over their future performance.
  • Amortisation of Intangible Assets: Increased amortisation expenses relating to new games that were commercially launched in March 2025 have further impacted results.
  • Rising Staff Costs and Benefits: There was a notable increase in staff-related expenses during the financial year.
• Unaudited Figures:
  The financial figures provided are based on preliminary unaudited consolidated management accounts. They have not yet been reviewed or audited by the Company’s auditor, nor confirmed by the Audit Committee. As such, the final results may differ when formally announced.
• Disclosure for Price Sensitivity:
  This announcement is made in accordance with the Inside Information Provisions of the Securities and Futures Ordinance and the Listing Rules. Investors should note that the information is considered potentially price sensitive.
• Further Details and Timeline:
  The detailed interim results announcement for the year ended 31 December 2025 is expected to be published by around the end of March 2026.

What Shareholders and Investors Need to Know

• Potential Share Price Impact:
  The announcement of a significantly larger loss than the previous year, coupled with the impairment and amortisation of key assets, is likely to weigh heavily on investor sentiment and may result in share price volatility.
• Strategic Concerns:
  The provision for impairment losses and the uncertainty over game performance raise questions about the success and future revenue contribution of the Company’s recent game launches.
• Operational Cost Management:
  The rising costs related to staff and benefits suggest that cost containment measures may be an area of focus in the near future.
• Exercise Caution:
  Investors and shareholders are strongly advised to exercise caution when dealing in the Company’s shares given the preliminary nature of the figures and the potential for further adjustments.

Company Statement

The Board, led by Chairman and Executive Director Zhang Yan, emphasizes that the information disclosed is based on currently available unaudited management accounts and is subject to final review and confirmation. The actual results may differ from those currently announced.

As of the announcement date (16 March 2026), the Board consists of four executive directors and three independent non-executive directors.

Disclaimer

This article is based on the Company’s profit warning announcement. The financial figures and statements are preliminary and unaudited, and actual results may differ. Investors are urged to refer to the formal interim results for final details and to exercise caution in their investment decisions. This article does not constitute investment advice.

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