Doumob Issues Profit Warning for FY2025: Significant Decline in Revenue and Increased Net Loss Expected

Key Highlights

• Doumob anticipates a substantial decrease in revenue for the year ending 31 December 2025.
• Expected revenue will decrease by approximately 20% compared to FY2024.
• Net loss attributable to equity holders is projected to significantly widen, reaching RMB22.8 million to RMB23.8 million, compared to RMB7.1 million in FY2024.
• Major factors driving these results include weak macro consumer demand, intensified industry competition, rising traffic costs, rigid operating expenses, and provisions for expected credit losses on financial assets.
• The announcement is based on unaudited management accounts and preliminary assessment; official audited results will be released by end of March 2026.

Detailed Analysis

Doumob, a company listed on the Hong Kong Stock Exchange (stock code: 1917), has issued a profit warning for its financial year ending 31 December 2025. This announcement, made in accordance with the Listing Rules and relevant provisions under Hong Kong’s Securities and Futures Ordinance, contains crucial information that shareholders and potential investors should closely monitor.

Revenue Decline

The Group’s management has conducted a preliminary assessment based on the latest available unaudited consolidated accounts. The revenue for FY2025 is expected to decrease by approximately 20% from the previous year. This decline is primarily attributed to persistent weakness in macro consumer demand and intensified competition within the industry. The company’s cornerstone online marketing business has experienced a downturn, directly impacting total revenue.

Widening Net Loss

Alongside the revenue decline, Doumob forecasts a sharp increase in net loss attributable to equity holders, with estimates ranging from RMB22.8 million to RMB23.8 million, compared to RMB7.1 million in FY2024. This worsening loss is mainly due to:

• Rising traffic costs that have not been offset by declining revenues.
• Rigid operating expenses which have remained constant despite reduced income.
• Recognition of provisions for expected credit losses on financial assets, further increasing total loss.

Implications for Shareholders and Investors

This announcement is highly price sensitive and can significantly impact Doumob’s share value. The substantial drop in revenue and escalation of losses suggest ongoing operational challenges and heightened financial risks. Investors should be aware that the information is based on preliminary and unaudited data, and the final audited results will be published by March 2026.

The Board advises all shareholders and potential investors to exercise caution when dealing in the shares of the Company, given the adverse financial outlook and the possibility of further negative developments.

Board Composition

As of the date of the announcement, the Board comprises:

• Executive Directors: Mr. Yang Bin (Chairman), Mr. Zhang Danqi, Ms. Shi Hui
• Non-Executive Director: Mr. Liu Ailun
• Independent Non-Executive Directors: Mr. Chan Yiu Kwong, Mr. Chen Hua, Mr. Zhang Limin

Conclusion

The profit warning issued by Doumob signals significant financial headwinds. The expected 20% reduction in revenue and the tripling of net loss compared to the prior year highlight the company’s struggles amid a challenging market environment. Investors should closely monitor upcoming announcements, including the audited annual results expected by March 2026.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The financial outlook presented is based on preliminary unaudited data and may be subject to change. Investors should exercise caution and seek professional financial advice before making any investment decisions regarding Doumob.

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