Impression Dahongpao 2025 Results: Net Profit Drops 21.8% on Rising Costs, Revenue Up 6.8%

Bulletin Express03-30 22:26

Impression Dahongpao Co., Ltd. released its audited results for the year ended 31 December 2025. Revenue increased 6.79% year-on-year to RMB150.92 million, driven mainly by the core shows and performance segment, while higher operating expenses and debut costs for the new production “Moonlight over Mount Wuyi” compressed margins and earnings.

Net profit attributable to shareholders fell 21.76% to RMB35.39 million, and total profit declined 35.11% to RMB39.77 million. The Group’s gross profit margin shrank to 47.24% from 56.60% a year earlier, reflecting a jump in cost of sales to RMB79.62 million (+29.85%).

Segment performance • Shows & Performance Services contributed 94% of revenue, rising 9.54% to RMB142.21 million, supported by the launch of “Moonlight over Mount Wuyi”. • Impression Cultural Tourism Town revenue slid 48.09% to RMB3.13 million after a one-off minimum-guarantee booking in 2024 was not repeated. • Chatang Hotel revenue declined 14.75% to RMB3.69 million amid changes to the profit-sharing arrangement with partner Thai Natural.

Expense trends Selling expenses rose 34.4% to RMB10.37 million and administrative expenses surged 61.6% to RMB17.13 million, largely reflecting start-up and organisational costs for the new show. Finance costs increased to RMB3.34 million due to lease-related interest and exchange losses on Hong Kong fund-raising proceeds.

Cash flow and balance sheet Operating cash inflow totalled RMB47.01 million (-24.31%). Investing cash outflow widened to RMB49.88 million, mainly for Moonlight Wuyi asset purchases. Financing activities generated RMB97.72 million versus a RMB28.28 million outflow in 2024, bolstered by the Hong Kong IPO proceeds and a RMB20 million capital injection into Moonlight Wuyi.

Total assets expanded 65.48% to RMB518.42 million; total liabilities rose 149.71% to RMB143.27 million, lifting the gearing ratio to 27.64% (2024: 18.31%). Cash and cash equivalents stood at RMB195.41 million, up 93.31% year-on-year.

Dividend The Board proposes a final cash dividend of RMB2.10 (tax inclusive) per 10 shares, equating to an aggregate payout of approximately RMB30.28 million, subject to shareholder approval.

Business outlook Management plans to deploy IPO proceeds to upgrade the flagship “Impression – Dahongpao” show, expand the Impression Cultural Tourism Town, enhance ticketing systems, and pursue potential project acquisitions, aiming for longer-term growth while focusing on operational efficiency and visitor experience.

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