SinoMedia Holding Limited Issues Profit Warning for FY2025: Revenue and Profit Set to Decline Sharply

Summary: SinoMedia Holding Limited (Stock Code: 00623) has issued a profit warning for the financial year ended 31 December 2025. The company expects a significant decline in both revenue and profit compared to the previous financial year.

Key Points in the Report

• Major Decline in Revenue: The Group is expected to record a total revenue of approximately RMB382 million for FY2025, a sharp decrease from RMB612 million in FY2024. This represents a decline of about 37.6%.
• Profit Expected to Drop: Profit for FY2025 is anticipated to be in the range of RMB72 million to RMB85 million, down from RMB106 million in the previous year. This signals a profit reduction of around 20% to 32%.
• Reasons for Decline:
  • The decrease in revenue and profit is primarily attributed to the Group’s adjustments in business structure and scale in response to changing market conditions.
  • The Group has also increased investment in artificial intelligence (AI) applications, focusing on future business expansion, which has impacted short-term financial performance.
• Financials Not Yet Audited: The figures disclosed are based on management’s preliminary assessment and the unaudited consolidated management accounts for the year. The final audited results will be published in the Company’s annual results announcement, expected in late March 2026.

Important Information for Shareholders

• This announcement is price sensitive: The significant drop in both revenue and profit is likely to impact investor sentiment and may affect the Company’s share price.
• Strategic Shift: The company is currently restructuring and investing heavily in AI, which may lead to long-term growth but is currently weighing on near-term profitability.
• Uncertainty Remains: As the results are unaudited and subject to revision, shareholders should monitor for the official audited results in late March 2026 for any further updates.
• Caution Advised: The board explicitly advises shareholders and potential investors to exercise caution when dealing in the shares of SinoMedia Holding Limited.

Board Composition as of Announcement Date

The board comprises Mr. Chen Xin (Chairman), Ms. Liu Jinlan, Mr. Li Zongzhou, and Ms. Liu Zhiyi as executive directors, and Mr. Qi Daqing, Ms. Ip Hung, Dr. Tan Henry, and Dr. Zhang Hua as independent non-executive directors.

Conclusion

The profit warning issued by SinoMedia Holding Limited signals substantial short-term headwinds for the company, with both top-line and bottom-line figures expected to contract significantly for FY2025. The ongoing strategic shift and investments in AI applications show a forward-looking approach but have resulted in immediate financial impacts. Investors should stay alert for the full-year audited results and assess the company’s long-term strategy in light of these developments.

Disclaimer: The above article is based on the Company’s unaudited preliminary financial disclosure and may be subject to change. Investors are advised to exercise caution and refer to the official audited results when they are released. This article does not constitute investment advice.

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