STAR CM Holdings Limited Issues Profit Alert: Significant Reduction in Net Loss for FY2025

Hong Kong, March 18, 2026 – STAR CM Holdings Limited (Stock Code: 6698) has issued a key profit alert announcing a substantial reduction in its net loss for the financial year ended December 31, 2025 (FY2025). This announcement, made in accordance with Hong Kong Listing Rules and the Inside Information Provisions, contains several noteworthy details that are highly relevant for shareholders and potential investors.

Key Highlights of the Announcement

• Expected Net Loss for FY2025: The Group is expected to report a net loss in the range of RMB100.0 million to RMB125.0 million, compared to a net loss of approximately RMB230.0 million in the corresponding period of 2024.
• Revenue and Gross Profit Margins: The Group maintained stable revenue during FY2025. Through enhanced cost controls and improved operational efficiency, the Group achieved higher gross profit margins than in the previous year.
• Impairment Charges: In 2024, the Group experienced significant impairments, including:
  • Goodwill impairment due to an expected decrease in future revenue from film broadcasting rights.
  • Impairments on financial assets and long-term assets.

  These notable impairment impacts were absent in FY2025.

• Administrative Expenses: The Group’s ongoing cost optimization initiatives led to a significant reduction in administrative expenses compared to 2024.
• Impairments on Associate Properties: Despite the improvement, the Group did not return to profitability in FY2025. This was due to impairment charges on properties held by certain associates, resulting in a significant change in the carrying value of these investments.

What Shareholders Need to Know

• The substantial reduction in net loss is a potentially price-sensitive development. Although the Group remains loss-making, the improvement is significant and indicative of successful cost management and operational improvements.
• The absence of major impairments (which had weighed heavily on the previous year’s results) is a positive sign for the Group’s asset quality and future earnings outlook.
• Shareholders should note the impairment charges on associate properties, which prevented a return to profitability. If the Group addresses these associate property-related issues, there may be additional upside in future results.
• The financial results are based on unaudited management accounts. The final audited results, which may differ from the figures provided, will be disclosed in the annual results announcement expected on March 27, 2026.

Board and Corporate Governance

The Board of STAR CM Holdings Limited is led by Mr. Tian Ming (Chairman and CEO), with a mix of executive and independent non-executive directors, including Mr. Jin Lei, Mr. Xu Xiangdong, Mr. Lu Wei, Ms. Wang Yan, Ms. Shen Ning, Mr. Li Liangrong, Mr. Chen Rehao, and Mr. Sheng Wenhao.

Investor Guidance

Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s shares, as the finalized data may differ from the preliminary figures disclosed in this announcement.

Disclaimer

This article is based on unaudited preliminary figures as disclosed by STAR CM Holdings Limited. The information herein does not constitute investment advice. Investors should refer to the Company’s official annual results announcement and consult their financial advisers before making investment decisions. All forward-looking statements are subject to risks and uncertainties.

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