HK Stock Market Move | ZENGAME (02660) fell more than 9% after issuing a profit warning. It is expected that the net profit attributable to shareholders for the year 2024 will decrease by about 35% to 45% year-on-year.

After the profit warning, ZENGAME (02660) fell by over 9%, as of the time of publication, it dropped by 9.73%, closing at HK$2.32, with a turnover of HK$2,723,300. On the news front, on January 21, ZENGAME announced that the Group expects a decrease in the profit attributable to owners of the company for the year ending December 31, 2024, of approximately 35% to 45% compared to the year ending December 31, 2023. The expected decrease is mainly due to: lower than expected sales of new products and gameplays, and a general downturn in the gaming market in 2024, leading to a decrease in the Group's revenue by around 15% to 25%; higher operating costs for games, resulting in a decrease in the Group's gross profit margin by around 5% to 10%; and the transfer of retained profits of RMB 500 million from indirect wholly-owned subsidiary Shenzhen ZENGAME Co., Ltd. to the Group, benefiting the Group and its shareholders as a whole, while incurring additional tax expenses of approximately RMB 70 million.