Tian Ge Interactive Holdings Limited Issues Profit Warning for FY2025

Key Highlights

• The Board of Tian Ge Interactive Holdings Limited announced a profit warning for the financial year ended 31 December 2025 (FY2025).
• The Company expects to report a consolidated net loss not exceeding RMB15.0 million for FY2025, compared to a net profit of approximately RMB19.9 million in FY2024.
• The preliminary figures are based on unaudited consolidated management accounts and remain subject to final audit.
• The audited annual results for FY2025 are expected to be published around 30 March 2026.

Details of the Expected Loss

The anticipated loss marks a significant reversal from the previous year’s profit and is likely to be a material and price-sensitive event for shareholders and potential investors.

The Board attributes the expected net loss to three main factors:

1. Increase in Product Incubation Costs:
   • The Group has strategically shifted focus to invest in and concurrently incubate multiple online interactive entertainment platforms across several regions.
   • This has led to substantial resource allocation and increased expenditure on product incubation.
2. Fair Value Losses on Financial Assets:
   • Valuation adjustments on unlisted equity investments resulted in fair value losses, primarily due to changes in the operating and financial conditions of the invested companies.
3. Fair Value Losses on Investment Properties:
   • The Company’s investment properties recorded fair value losses due to changes in the domestic and U.K. real estate markets.

Implications for Shareholders

This profit warning is highly relevant for shareholders:

• The expected net loss represents a notable deterioration in financial performance compared to the previous year’s profitability.
• Factors leading to the loss — including heavy investment in new product incubation and adverse market conditions affecting asset valuations — may signal ongoing risks and strategic shifts for the Group.
• Shareholders should be aware that the preliminary assessment is based on unaudited figures and actual audited results could differ.
• The announcement underlines that these developments may materially affect the Company’s share price.

Corporate Governance

The Board consists of executive directors Mr. Fu Zhengjun (Chairman), Mr. Mai Shi’en, and Mr. Zhao Weiwen; non-executive director Ms. Cao Fei; and independent non-executive directors Mr. Tse Ming Lun Alan, Mr. Wang Mingchun, and Mr. Lam Yick Man.

Timeline

• This announcement was made on 24 March 2026.
• Final audited annual results for FY2025 are expected to be released around 30 March 2026.

Conclusion

This profit warning signals a significant change in Tian Ge Interactive Holdings Limited’s financial outlook, driven by increased investment in new entertainment platforms and adverse market conditions. The anticipated loss, contrasting sharply with last year’s profit, is a critical event that could impact share valuation. Investors are advised to closely monitor upcoming audited results and market reactions.

Disclaimer: This article is based on preliminary unaudited information. The final audited results may differ. Investors should not rely solely on this report for investment decisions and are encouraged to consult professional advisers.

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