IDREAMSKY (01119) released a profit warning, expecting to achieve a net profit of approximately 10 million to 30 million yuan in 2025, reversing from a loss to a profit compared to the previous year.

IDREAMSKY (01119) announced that the group is expecting a net profit for the fiscal year 2025 (ending on December 31, 2025) to be between approximately RMB 10 million and RMB 30 million. This is a significant improvement from the net loss of approximately RMB 545 million in the same period last year. The turnaround in net profit for the fiscal year 2025 is mainly attributed to the following reasons: (1) the good performance of self-developed game products and continuous contribution of other game products to revenue, leading to an increase in the overall profit margin of the group; (2) self-developed game products entering the commercialization stage, leading to a decrease in research and development investment compared to the previous year; (3) the group implementing detailed cost control measures, resulting in a decrease in related expenses compared to the previous year. The group is expecting a net cash flow from operating activities of approximately RMB 60 million to RMB 80 million for the fiscal year 2025, reflecting the stable cash flow from its business operations.