Digital China Holdings Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Turnaround in Profitability: Digital China Holdings Limited expects to swing from a substantial loss in FY2024 to a profit in FY2025. The estimated profit attributable to equity holders is between RMB 20 million and RMB 40 million for the year ended 31 December 2025, compared to a loss of approximately RMB 254 million in the previous year.
• Revenue Growth: The Group recorded operating revenue of RMB 16.657 billion in FY2024 and anticipates a significant increase in revenue in FY2025, driven by higher business volume.
• Reduced Impairment Losses: In FY2024, the Group recognized a goodwill impairment loss of RMB 365 million due to underperformance of a subsidiary. This impairment loss is expected to decrease substantially in FY2025, contributing to the improved bottom line.
• Management Statement: The Board attributes the expected profit increase primarily to higher operating revenue and reduced impairment losses.
• Disclosure: The information provided is based on preliminary unaudited management accounts and has not been audited or finalized. The audited results for FY2025 are expected to be released in March 2026.

Important Information for Shareholders and Investors

• Potentially Price Sensitive: The announcement marks a significant change in financial performance for the Group, moving from a large loss to a profitable position. This turnaround is likely to be price-sensitive and may impact the share value of Digital China Holdings Limited.
• Caution Advised: Shareholders and potential investors are urged to exercise caution when dealing in the Company’s shares, as the figures are preliminary and subject to change pending the final audited results.
• Timing: The final audited results for FY2025 will be announced in March 2026, which may provide further clarity and confirmation of the financial turnaround.

Board and Management

The Board of Directors, led by Chairman and Chief Executive Officer Mr. Guo Wei, consists of ten members including executive, non-executive, and independent non-executive directors. The Board remains committed to keeping shareholders informed about financial developments and future outlook.

Conclusion

This positive profit alert suggests a significant turnaround for Digital China Holdings Limited, with expectations of profitability in FY2025 driven by revenue growth and lower impairment losses. As this information is potentially price sensitive and may influence share price movements, investors are advised to remain vigilant and await further updates, particularly the audited financials due in March 2026.

Disclaimer

The information in this article is based on preliminary unaudited financial statements and may be subject to change upon finalization of the audited results. This article does not constitute investment advice. Investors should consult their financial advisors and review official company disclosures before making any investment decisions.

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