REGO INTERACT (02422) issued a profit warning, with the expected net loss attributable to owners of the company in 2025 not less than 68.4 million yuan, an increase of 74.0% year-on-year.

REGO INTERACT (02422) announced that the group expects a net loss attributable to owners of the company of not less than RMB 68.40 million for the year 2025, an increase of 74.0% compared to the previous year. The group also expects an adjusted net loss of not less than RMB 49.80 million for the year 2025, an increase of 78.5% compared to the previous year. The board of directors believes that the increase in the expected losses is mainly attributable to: (i) the continuous downturn in the 2025 Chinese consumption market, with many companies cutting marketing budgets and overall advertising levels. In addition, due to adjustments in communication business agency policies, the group's revenue from virtual goods procurement and delivery services has decreased; and (ii) given the uncertain market environment, the group continues its cautious policy in selecting high-quality customers to control credit risks.