Huanxi Media Group Limited Issues Profit Warning for Financial Year 2025

Key Points for Investors

• Substantial Net Loss Expected: The Group anticipates a net loss of approximately HK\$498 million for the year ended 31 December 2025, compared to a net loss of HK\$261 million for the previous year. This represents an increase of HK\$237 million in losses.
• Major Impairment Charges: The increase in net loss is primarily attributed to two factors:
  • An impairment loss on film and TV programme rights totaling approximately HK\$184 million during FY2025, driven by decreased expected income from these rights following the latest market developments.
  • An increase in impairment losses on financial assets and contract assets amounting to approximately HK\$41 million.
• Preliminary Figures: The financial figures disclosed are based on unaudited consolidated management accounts and are subject to change pending finalization and audit review.

Shareholder and Price Sensitive Information

• Market Impact: The significant increase in net loss and impairment charges could materially affect the Group’s share value. The underlying reasons—lower expected income from film and TV rights and higher impairment losses—signal ongoing challenges for the company amidst evolving market conditions.
• Financial Uncertainty: As these numbers are unaudited and may be adjusted before the final results are published, investors should anticipate potential volatility and uncertainty regarding the Group’s actual financial position.
• Results Announcement Date: The final audited results for FY2025 are expected to be published on 30 March 2026. Shareholders and potential investors are advised to closely monitor developments and exercise caution when trading the company’s securities.

Additional Details

• Board Composition: The Board currently comprises Mr. Xiang Shaokun, Steven (Chief Executive Officer), Ms. Hu Hui (Executive Director), Mr. Ning Hao and Mr. Xu Zheng (Non-executive Directors), and Mr. Wong Tak Chuen, Mr. Li Xiaolong, and Mr. Wang Hong (Independent Non-executive Directors).
• Regulatory Disclosure: This announcement was made in accordance with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance.
• Date of Announcement: The profit warning was issued on 24 March 2026.

Implications for Investors

The sharp increase in net loss and impairment charges highlights substantial operational and financial risks facing Huanxi Media Group Limited. The company’s difficulties in generating expected returns from its film and TV programme rights, coupled with higher impairment losses on financial and contract assets, could signal deeper challenges within its core business segments. These developments are likely to be viewed negatively by the market and may exert downward pressure on the company’s share price.

Investors should be aware that the final figures may change once audited results are released. Caution is strongly advised when considering any investment or trading decisions regarding the company’s securities.

Disclaimer: This article is based on unaudited and preliminary information provided by Huanxi Media Group Limited. The information may be subject to further adjustments following audit and review processes. Investors are advised to exercise caution and seek professional advice before making any investment decisions.

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