FingerTango Inc. Issues Profit Warning for FY2025: Significant Turnaround from Profit to Loss
FingerTango Inc. (the “Company”), a Hong Kong-listed game developer and operator, has issued a profit warning, signaling a substantial deterioration in its financial performance for the year ended 31 December 2025. This announcement, made in accordance with Hong Kong’s Inside Information Provisions and Listing Rules, contains several key developments that shareholders and potential investors must consider carefully.
Key Highlights from the Profit Warning
- Expected Loss for FY2025: The Group anticipates recording a loss attributable to owners of approximately RMB35.3 million for the year ended 31 December 2025. This marks a sharp reversal from a profit of about RMB32.8 million reported in the previous fiscal year (2024).
- Revenue Decline: The Group’s revenue fell by about RMB220.6 million, representing a significant 36.2% year-on-year decrease. The decline is mainly attributed to the natural revenue drop from its classic games, which have reached their mature operational stage and are no longer generating growth.
- Increased R&D Investment: Research and development expenses grew by RMB8.8 million or 13.6% compared to the previous year. The Company describes this as a strategic commitment to enhancing its game development pipeline for sustainable long-term growth.
- Decrease in Other Income, Gains, and Losses: Other income, gains, and losses decreased by approximately RMB13.9 million or 40.6% year-on-year. This was mainly due to:
- A decline in interest revenue, which dropped by RMB9.0 million (a 46.9% decrease).
- The absence of a significant reversal of loss allowance for notes and other receivables, which contributed RMB12.1 million in 2024 but did not recur in 2025.
- These negative impacts were partially offset by an increase in fair value gains on investments at fair value through profit or loss, recording a gain of RMB11.6 million compared to a loss of RMB2.3 million in 2024.
Important Considerations for Shareholders
- Price-Sensitive Information: The dramatic turnaround from profit to loss, coupled with a significant revenue decline and increased operating costs, is likely to be considered price-sensitive and could impact the Company’s share price negatively upon market reaction.
- Unaudited Results: The financial figures provided are based on unaudited consolidated management accounts and have not been reviewed by the Company’s audit committee or external auditor. Final audited results will be announced in late March 2026, and there may be adjustments.
- Strategic Direction: The increased R&D spending signals management’s focus on future game development, but this investment has yet to translate into financial returns, given the current loss position.
- Revenue Sustainability Risks: The Company’s revenue model, heavily reliant on mature classic games, may be at risk unless new product pipelines can deliver growth.
Leadership and Corporate Information
This announcement was signed by the Company Secretary, CHIK Wai Chun, and dated 26 March 2026. The current Board comprises Dr. CHAN Man Fung and Ms. LI Nini as executive Directors, and Mr. Yip Chong Ho Eric, Mr. SHIN Ho Chuen, and Mr. JIANG Huihui as independent non-executive Directors.
What Should Investors Do?
Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of FingerTango Inc. The Company has highlighted the possibility of further changes as the audited results are finalized. The anticipated loss, revenue decline, and increased costs present material risks that could impact share value.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on the Company’s profit warning announcement and may be subject to change once the audited results are released. Investors should conduct their own due diligence or consult a professional advisor before making any investment decisions.
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