Rego Interactive Issues Profit Warning: Substantial Widening of Losses Expected for FY2025

Key Highlights

• Significant Increase in Net Loss: Rego Interactive Co., Ltd expects to report a net loss attributable to owners of at least RMB68.4 million for the year ended 31 December 2025. This marks a sharp increase of 74.0% compared to the RMB39.3 million net loss recorded in 2024.
• Adjusted Net Loss Also Expanding: The adjusted net loss (excluding foreign exchange differences, fair value changes in financial assets, goodwill impairment, and write-offs) is projected at no less than RMB49.8 million, up 78.5% from RMB27.9 million the previous year.
• Challenging Market Environment: The company attributes the worsening losses mainly to subdued consumer market sentiment in China during 2025. Many enterprises have cut marketing budgets, leading to a broad reduction in advertising spending.
• Drop in Revenue from Key Business Segment: Revenue from virtual goods sourcing and delivery services has declined, further impacting the company’s topline.
• Prudent Risk Management: Amidst uncertainty, Rego Interactive has maintained a cautious approach, focusing on high-quality clients to control credit risk exposure.

Details for Shareholders

• Market Sensitivity: The scale of deterioration in both reported and adjusted net losses is material and likely to be price sensitive. These losses reflect not only macroeconomic pressures but also sector-specific challenges, including changing agency policies in communications and reduced client spending.
• Strategic Response: Management is responding by concentrating on its core business areas, specifically deepening integration in the lottery market (with a focus on the sports industry), developing AI digital lottery store modeling, and enhancing operational efficiency.
• Future Business Direction: The company is also looking to expand within the “corporate digitalisation solutions services” and “industry digitalisation solutions services” sectors, with an eye on future “cross-industry empowerment solutions.” This pivot aims to boost growth and resilience amid ongoing macroeconomic volatility.
• Results Not Yet Final: The announced figures are based on management’s preliminary assessment of unaudited accounts. The final audited results for 2025 may differ when published by the end of March 2026.
• Caution Advised: Investors are strongly advised to exercise caution in trading the company’s shares due to the significant downside indicated by this profit warning and the uncertain market outlook.

Board and Management Update

The announcement was authorized by Chairman and Executive Director, Mr. Chen Ping, together with the full board, including both executive and independent non-executive directors.

Conclusion

The profit warning from Rego Interactive Co., Ltd is a material development, signaling a much deeper loss for FY2025 than previously recorded. The combination of a tough economic climate, shrinking client budgets, and internal policy adjustments has significantly impacted the company’s financials. While management is taking steps to adapt and seek new growth avenues, near-term challenges remain prominent. Investors should monitor final results and company updates closely, given the potential for share price volatility.

Disclaimer: The information above is based on preliminary, unaudited accounts and management’s current assessment. Final audited results may vary and investors should refer to the official results announcement, expected by the end of March 2026. This article does not constitute financial advice. Please consult your financial advisor before making investment decisions.

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