MOG Digitech Holdings Issues Profit Warning: Net Loss Narrows for FY2025

MOG Digitech Holdings Limited (Stock Code: 1942) has released a significant update regarding its financial performance for the year ended 31 December 2025. The announcement, made in accordance with Hong Kong Stock Exchange regulations, contains several key developments that are highly relevant for shareholders and potential investors.

Key Highlights of the Profit Warning

• Reduction in Net Loss: The Group expects to record a net loss attributable to owners of the Company for FY2025 of not more than RMB110.0 million. This is a marked improvement compared to the net loss of approximately RMB143.2 million for FY2024.
• Reasons for the Reduced Loss: The reduction in net loss is primarily due to the following factors:
  • No Repeat of Large Impairments: There was an absence of impairment losses recognized in FY2025, compared to FY2024, when the Group recorded an impairment of RMB55.2 million on intangible assets. This impairment was linked to a credit facility contract supporting the Positive Oasis Group, which expired on 31 December 2024.
  • No Goodwill Impairment This Year: The Group also did not recognize impairment on goodwill in FY2025. In FY2024, an impairment loss of RMB37.6 million was recognized relating to the Positive Oasis Group and Create Tune Development Limited and subsidiaries, due to their unsatisfactory financial performance.
  • Offset by Higher Costs: The improvement in the bottom line was partly offset by an increase in administrative expenses resulting from extensive deployment in financial technology-related business activities during FY2025.
  • Higher Provision for Impairment Losses: There was also an increase in provision for impairment loss on trade and other receivables, due to increased loan receivables as at 31 December 2025.

Price-Sensitive Information for Shareholders

• The expected reduction in net loss is primarily attributable to the absence of large, one-off impairment losses that significantly affected FY2024 results. This could be seen as a positive step in the Group’s financial stabilization, but investors should be aware of the continued losses and increased administrative and impairment expenses.
• The Group’s ongoing exposure to higher administrative costs and increased provisions for impairment could impact future profitability if not managed effectively.
• The Group’s results for FY2025 are still subject to audit, and the numbers provided are based on unaudited management accounts. There may be adjustments that could affect the final results.

Important Notes and Caution to Investors

• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of the Company until the audited results are released. The audited annual results for FY2025 are expected to be published on 31 March 2026.
• The information in this announcement is a preliminary assessment and has not been reviewed by the audit committee. Actual results may differ from those stated.

Board and Management

• As of 26 March 2026, the Board comprises four executive Directors (Mr. Deng Zhihua – Chairman and Co-CEO, Mr. Chen Yongzhong – Co-CEO, Mr. Mo Mingdong, and Mr. Zhou Yue) and three independent non-executive Directors (Mr. Yau Tung Shing, Ms. Chen Wen, and Mr. Gao Hongxiang).

Disclaimer: The above article is based on preliminary unaudited results and forward-looking statements made by MOG Digitech Holdings Limited. Actual financial results may differ after the completion of the audit process. Investors should consult the official audited results, expected on 31 March 2026, and seek professional advice before making investment decisions. The content should not be construed as investment advice.

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