iDreamSky Technology Holdings Limited (01119.HK) issued a positive profit alert, projecting a net profit of approximately RMB10 million to RMB30 million for the 12 months ended 31 December 2025. The guidance signals a sharp reversal from the prior year’s RMB545 million net loss.
Management attributes the expected turnaround to three key factors:
1. Strong commercial performance of self-developed game titles, supplemented by stable contribution from existing titles, which lifted overall profit margins. 2. Transition of self-developed games into the monetisation phase, driving a year-on-year reduction in research and development spending. 3. Ongoing cost-control initiatives that lowered operating expenses.
Operating cash flow is also set to improve, with net cash inflow from operating activities forecast between RMB60 million and RMB80 million, underscoring strengthened liquidity.
The figures are derived from unaudited management accounts and remain subject to audit and board review. iDreamSky plans to release its full FY 2025 results by the end of March 2026.
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