Maoyan Entertainment warns of significant profit decline

Maoyan Entertainment (HKEX: 1896) issued a profit warning, anticipating a notable drop in revenue and profit for the year ended December 31, 2024. The company expects revenue to range between RMB4.05 billion and RMB4.15 billion, representing a 12.8% to 14.9% decrease compared to the RMB4.7574 billion reported in 2023. Profit attributable to owners is projected to fall within RMB150 million and RMB200 million, a significant decline of 78.0% to 83.5% from the RMB907.8 million reported in the previous year. Maoyan attributes this downturn primarily to the overall decrease in China's film market box office revenue and lower-than-expected performance of certain movies in which it was involved. While the live entertainment market experienced growth, the decline in film revenue has considerably affected overall profitability. The final results are expected in mid-to-late March 2025.