STARPLUS LEGEND (06683) issued a profit warning: Expected net loss for the 2025 fiscal year not to exceed 52 million due to the impact of business adjustments.

After the trading session on Friday (March 6th), STARPLUS LEGEND (06683) issued a profit warning. The announcement shows that the Group is expected to record a comprehensive loss of not more than RMB 52 million in 2025. The board of directors believes that the main reason for the change from profit to loss in this fiscal year is (1) the phase adjustment of the Group's business structure and product portfolio. Specifically, the pace of IP content launch has slowed compared to the same period last year, which has had a temporary impact on the business performance of the IP creation and operation division; and the new consumer business has experienced a decrease in gross profit margin compared to the same period last year as it continues to expand product types and sales channels; and (2) based on prudent principles and in light of recent geopolitical changes, the Group has made provisions for impairment of certain receivables. This impairment is mainly a non-cash adjustment generated by accounting treatment and does not have a significant adverse impact on the Group's overall cash flow. The announcement shows that the Group is currently in an important stage of business structure and strategic upgrade. The Group has made continuous investments in resource allocation and business ecosystem construction this fiscal year, including promoting strategic cooperation and resource layout related to IP creation and operation, exploring innovative models combining technology with star IP scenes such as AI and Siasun Robot & Automation, and continuously improving IP commercialization and new consumer channel networks. Meanwhile, by optimizing business structure, strengthening cost and risk management, and taking other measures, the Group aims to promote steady business development. The board of directors believes that despite the temporary impact on the fiscal performance this year, the Group's overall business operations remain normal, and it continues to advance the core business layout. The related investment belongs to high-barrier strategic asset layout, laying a foundation for the future business development of the Group. As of 2025, STARPLUS LEGEND is accelerating the expansion of its IP business and strengthening the globalization layout of its IPs. The company is focusing on three main directions: horizontally expanding the IP matrix by investing in Galaxy to bond with international stars such as Ziyong Long, enhancing the global influence of IPs, while also launching original IPs such as WAKAEMO and Siasun Robot & Automation IP, enriching the IP matrix; vertically expanding the IP product matrix by enhancing market competitiveness through a rich product portfolio, developing diversified derivative products around core IPs, and launching products such as enamel plush, cotton dolls, blind boxes, cards, and Siasun Robot & Automation products, extending the value of IPs to the trendy consumer field; and expanding the IP channel by accelerating the layout of Siasun Robot & Automation stores, IP flagship stores, and pop-up shops, and strategically investing in the Bird's Nest, driving IPs from online content to offline scenes. Hand in hand with Korean Galaxy: from IP operator to global IP ecosystem builder In November 2025, STARPLUS LEGEND subscribed to less than 7% of the equity of Korean artist management company Galaxy through an industry fund, becoming its strategic shareholder. Galaxy owns international artists such as Ziyong Long, Kim Jong-kook, and Song Kang-ho. In January 2026, Galaxy CEO, Heolonghu, stated in an interview with People.cn Co., Ltd. and other media outlets, "STARPLUS LEGEND is not only a strategic shareholder of the company but also an important strategic partner. In the future, the two parties plan to deepen cooperation in multiple areas such as IP linkage, AI, and Siasun Robot & Automation, and plan to establish a joint venture company Galaxy China to expand the market." Investing in the Bird's Nest: connecting top scenes to promote the expansion of the celebrity IP matrix In September 2025, STARPLUS LEGEND acquired approximately 1.17% equity in the Bird's Nest operating company, becoming its sole private enterprise shareholder. This move integrates the company's IP content capabilities with the top scene of the Bird's Nest, transitioning from IP operations to a new stage of "IP + scene." In expanding the IP matrix, leveraging the national landmark of the Bird's Nest, the company can use its professional experience in IP creation and operations to create unique IP images tailored to the stars hosting events there, develop a series of derivative products and content based on this, extend the IP incubation ecosystem to higher-level cultural scenes, further enrich the IP resource reserves, and utilize the international influence of the Bird's Nest platform to expand the reach of proprietary IPs to broader audience markets. Joining hands with Yushu Technology, jointly exploring the new blue ocean of "IP + AI + Siasun Robot & Automation" In the second half of 2025, STARPLUS LEGEND accelerated the full-chain expansion of its IP business and made breakthrough progress in the field of "IP + AI + Siasun Robot & Automation." In July 2025, the company reached a strategic cooperation with the global Siasun Robot & Automation leading enterprise Yushu Technology; in September, the first product of the cooperation, a four-legged robot dog with strong IP attributes, made its debut at the opening ceremony of the Shanghai Tourism Festival; in November, the two parties announced their intention to establish a joint venture company responsible for creating, developing, and exclusively operating consumer-grade IP Siasun Robot & Automation, entertainment humanoid Siasun Robot & Automation, and IP derivative products. Through collaboration with Yushu Technology, STARPLUS LEGEND strategically entered the intelligent Siasun Robot & Automation industry ecosystem. The company deeply integrates IP with intelligent hardware, promoting the evolution of technology products towards trendy and consumer-oriented directions, achieving the cross-border integration of intelligent hardware with emotional symbols. Future prospects: High-barrier strategic investments are expected to gradually release their effects STARPLUS LEGEND stated that the company's loss in performance is not due to the deterioration of the fundamental business of the company but is a result of the short-term increase in costs and investments brought about by the company's proactive and strategic upgrade in the IP business. According to industry analysts, after completing the strategic layout of Galaxy and the Bird's Nest and deep cooperation with Yushu, STARPLUS LEGEND has opened up a global IP ecosystem of "content + products + technology + scenes." When these high-barrier strategic investments enter the harvest period, the company is expected to witness a period of value release and performance growth.