On May 28, Damai Entertainment fell 6.25% in regular trading, trading at HK$0.60/share, with trading volume of approximately HK$66.85 million.
On the news front, the company released its annual results on May 27, reporting revenue of approximately RMB 8.024 billion, up 20% year-over-year, and net profit attributable to shareholders of approximately RMB 705 million, up 94% year-over-year. The results were broadly in line with the prior profit alert guidance of net profit no less than RMB 700 million, offering no upside surprise to the market.
The stock had previously rallied sharply on the back of the box office success of its co-produced film A Letter to Grandma, which has a projected total gross of RMB 1.6 billion. With significant short-term cumulative gains already priced in, the confirmation of earnings triggered a classic sell-the-news response, with concentrated profit-taking pressure driving the decline. The drama production segment recorded revenue of approximately RMB 1.401 billion, surging over 100% year-over-year, while IP derivative business revenue reached RMB 2.17 billion, up 60%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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