CHINA LIT (772) issues profit warning, New Classics Media faces another HKD 1.8 billion goodwill impairment

CHINA LIT issued a profit warning due to an impairment of goodwill of HKD 1.8 billion from New Classics Media, expecting a loss of HKD 750 million to HKD 850 million in 2025. New Classics Media's profit will decrease, with non-recurring profit dropping to HKD 800 million to HKD 900 million. In response to audience expectations for high-quality content, New Classics Media will adjust its production strategy, control the pace of creation, and enhance content quality. CHINA LIT hopes that New Classics Media will continue to leverage its core value and create long-term value. In 2018, CHINA LIT acquired New Classics Media for approximately HKD 15.5 billion