Boyaa Interactive Issues Profit Warning for FY2025 Amid Cryptocurrency Value Drop

Key Points from the Profit Alert

• Significant Expected Loss for FY2025: Boyaa Interactive International Limited (Stock Code: 0434) has announced it expects to record a substantial loss attributable to shareholders of approximately HK\$230 million to HK\$240 million for the year ended 31 December 2025.
• Contrast with Prior Year: For the fiscal year ended 31 December 2024, the company posted a profit attributable to owners of approximately HK\$969 million (restated), mainly from an increase in the fair value of cryptocurrencies held by the Group.
• Main Driver of Losses: The anticipated loss for 2025 is primarily due to a marked decline in Bitcoin prices during the fourth quarter of 2025, resulting in a decrease in the fair value of the Group’s cryptocurrency holdings.
• Impact Excluding One-Off Factors: Excluding non-operating, one-off items (such as fair value changes in digital assets and certain financial assets), profit attributable to owners is still expected to drop by approximately 55% to 60% compared to 2024. This drop is mainly due to lower value-added gains from digital assets, reduced interest income (as a result of lower deposits after cryptocurrency purchases), and a year-on-year increase in employee compensation and welfare expenses.
• Information is Preliminary: The figures provided are based on unaudited consolidated management accounts and have not been reviewed or confirmed by independent auditors. The final results could differ following further review and discussions with the audit committee.
• Timing of Official Results: The company expects to announce its audited annual results for 2025 by the end of March 2026.
• Cryptocurrency Price Volatility: The actual impact on profit could fluctuate further, as the fair value of digital assets is based on market prices as of 31 December 2025, and cryptocurrency prices can be highly volatile.

Shareholder and Investor Implications

• Price Sensitive Information: This profit alert is highly price sensitive. The shift from a considerable profit in 2024 to a large loss in 2025—driven by external market factors like cryptocurrency price swings—could significantly affect investor sentiment and the company’s share price.
• Core Operating Concerns: The 55%–60% drop in underlying profit (excluding one-off digital asset revaluations) highlights ongoing challenges in the Group’s core business, beyond just cryptocurrency market movements.
• Warning on Trading: Shareholders and potential investors are specifically advised to exercise caution in dealing in Boyaa’s securities given the uncertainties and the possible impact of ongoing cryptocurrency price fluctuations.

Other Important Details

• The announcement was made by the order of the Board, with Mr. DAI Zhikang serving as Chairman and Executive Director, and was released in Hong Kong on 3 March 2026.
• The company’s board comprises both executive and independent non-executive directors, underscoring a standard governance structure.

Conclusion

The profit warning from Boyaa Interactive is a critical update for shareholders and the market, emphasizing the company’s exposure to cryptocurrency market volatility. With a projected swing from a HK\$969 million profit in 2024 to a HK\$230–240 million loss in 2025, and a core business profit decline of over 50%, this development is likely to influence share price performance and investor sentiment in the near term.

Investors are strongly urged to closely monitor subsequent announcements, especially the official results release, and to be mindful of the risks associated with high exposure to digital asset values.

Disclaimer: The information above is based on the company’s preliminary announcement and unaudited figures. Actual results may differ following audit and further review. This article does not constitute investment advice. Investors should exercise caution and seek professional advice where necessary.

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