Impression of Dahongpao (02695) issued a profit warning. Net profit returned to mother is expected to be about 2.5 million yuan in the medium term, down about 75.1% year on year

According to Zhitong Finance App, Impression Dahongpao (02695) issued an announcement. It is expected that the Group will obtain total revenue of about RMB 47.1 million for the six months ended June 30, 2026, down about 15.9% from the six months ended June 30, 2025; and obtain net profit attributable to shareholders of about RMB 2.5 million during the reporting period, down about 75.1% from the six months ended June 30, 2025.

The Board expected that the aforementioned decline was mainly due to the following reasons: the number of visitors and audience visits during the reporting period decreased significantly compared to the same period in 2025, mainly due to unanticipated extreme weather in the first half of 2026; and a decrease in large-scale group visits organized by trade unions and schools. The reason is that most of the shows were newly launched in 2025 and benefited from one-time promotion support, which did not continue during the reporting period. Furthermore, the Group's sales costs during the reporting period increased compared to the same period in 2025, mainly due to the fact that Fujian Yueying Wuyi Cultural Tourism Co., Ltd., a subsidiary of the Company, operated for 6 months during the reporting period and only operated for 2 months for the 6 months ended June 30, 2025. This difference in operating hours resulted in increased depreciation and amortization, as well as additional utility costs and employee salaries. Furthermore, in December 2025, the Impression Jianzhou Project Cooperation Agreement between Wuyishan Impression Dahongpao Cultural Tourism Co., Ltd. and the Impression Market Operation Agreement between Wuyishan Impression Dahongpao Cultural Tourism Co., Ltd. and Sanming Pengcheng City Operation and Management Co., Ltd. were terminated, resulting in a loss of guaranteed revenue during the reporting period.