"Profit Warning" MAOYAN ENT forecasts a decline in interim profit of 29.8%-43.8%

MAOYAN ENT (01896.HK) issued a profit warning, expecting a profit of between RMB 160 million and RMB 200 million for the six months ending in June, a decrease of 29.8%-43.8% compared to the same period last year. This is mainly due to the underperformance of some films in which the group participated, leading to a certain degree of decline in the profitability of the entertainment content service business; and based on the increase in online ticket sales during the period, the overall offline performance market maintained a high level of activity, and the group continued to increase investment, resulting in significant increases in costs such as internet infrastructure and ticketing systems, which had a corresponding impact on profits. In the first half of the year, revenue is expected to be between RMB 2.4 billion and RMB 2.5 billion, an increase of 10.6%-15.2%