Impression Dahongpao Co., Ltd. (Impression Dahongpao) has issued a profit warning for the six months ended 30 June 2026, signalling a sharp deterioration in interim earnings.
Total revenue is expected to be about RMB47.10 million, down 15.9% from the same period in 2025. Net profit attributable to shareholders is projected to decline 75.1% year-on-year to approximately RMB2.50 million.
Management attributes the weaker performance to several factors:
1. Demand shock: Visitor numbers and audience attendance fell significantly, hit by extreme adverse weather in early 2026 and the absence of one-off promotional support that had boosted large group visits from labour unions and schools in 2025.
2. Cost escalation: Cost of sales rose as subsidiary Fujian Province Moonlight Wuyi Cultural Tourism Co., Ltd. contributed a full six months of expenses—versus only two months in the prior-year period—leading to higher depreciation, utilities and staff costs.
3. Lost guaranteed income: The December 2025 termination of the Impression Jianzhou project and Impression Market operation agreements eliminated guaranteed revenue streams in the current period.
The figures are based on unaudited management accounts and may be adjusted. The company plans to release its full interim results in August 2026.
Comments