IMPRESSION DHP Issues Profit Warning, Expects Interim Net Profit Attributable to Shareholders of Approximately RMB 2.5 Million, Down About 75.1% Year-on-Year

Stock News08-12

IMPRESSION DHP (02695) has issued an announcement, expecting the Group to record total revenue of approximately RMB 47.1 million for the six months ending June 30, 2026, a decrease of about 15.9% compared to the six months ended June 30, 2025. The Group is also expected to record net profit attributable to shareholders of approximately RMB 2.5 million for the reporting period, a decrease of about 75.1% compared to the six months ended June 30, 2025.

The Board attributes the anticipated decline mainly to the following: a significant drop in the number of tourists and audience attendance during the reporting period compared to the same period in 2025, primarily due to unexpected extreme adverse weather conditions in the first half of 2026, and a decrease in large-scale group visits organized by trade unions and schools, as most performances were newly launched in 2025 and benefited from one-time promotional support, which was not continued in the reporting period.

Additionally, the Group's sales costs for the reporting period increased compared to the same period in 2025, mainly because the Company's subsidiary, Fujian Yueying Wuyi Cultural Tourism Co., Ltd., was in operation for six months during the reporting period, compared to just two months of operations in the six months ended June 30, 2025. This difference in operating duration led to higher depreciation and amortization, as well as additional utility and employee salary expenses. Furthermore, the termination of the cooperation agreement for the Impression Jianzhou project between Wuyishan Impression DHP Cultural Tourism Co., Ltd. and Fujian Spring Catering Management Co., Ltd., and the Impressions Market operation agreement between Wuyishan Impression DHP Cultural Tourism Co., Ltd. and Sanming City Pengcheng Urban Operation Management Co., Ltd., both in December 2025, resulted in a loss of guarantee income during the reporting period.

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