Game operator CMGE Technology Group Ltd. (0302.HK) said on Wednesday it expects to report that its net loss for 2024 ballooned to 2.2 billion yuan ($304 million) from a loss of 38 million yuan in 2023, as its annual revenue fell 25% to 30% for the year.
The company attributed the revenue decline mainly to delayed new game launches, as well as poor performance by some games launched during the year. It added that some of its other previously launched games were nearing the end of their lifecycles.
CMGE said its non-operating expenses increased significantly from 100 million yuan in 2023 to 1.7 billion yuan last year. It attributed the big jump to fair value losses in several investments, as well as impairment of intangible assets such as intellectual property rights, content provider licenses and development expenses.
Shares of CMGE opened down 14% at HK$0.43 on Thursday. The shares are down more than 70% over the past year.
By Lau Chi Hang
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