Digital China Flags Return to Profit on Revenue Growth and Lower Impairments

Digital China Holdings ( (HK:0861) ) has issued an update.

Digital China Holdings has signalled a sharp turnaround in its financial performance, forecasting that profit attributable to equity holders will swing from a loss of about RMB254 million in 2024 to a profit of between RMB20 million and RMB40 million for the year ending 31 December 2025. The profit recovery is expected to be driven by a significant increase in business volume that will lift revenue from the 2024 base of RMB16.657 billion, alongside a substantial reduction in goodwill impairment charges after a large RMB365 million write-down on an underperforming subsidiary last year.

The alert indicates improving operational momentum and a cleaner balance sheet, suggesting that the group may be emerging from a period of restructuring and earnings pressure. For shareholders and potential investors, the move back into profitability could mark an inflection point in Digital China’s earnings cycle, though the company has cautioned that the figures are based on unaudited management accounts and remain subject to adjustment until the audited 2025 results are released in March 2026.

The most recent analyst rating on (HK:0861) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Digital China Holdings stock, see the HK:0861 Stock Forecast page.

More about Digital China Holdings

Digital China Holdings Limited is a Hong Kong-listed technology group that operates through various subsidiaries. The company focuses on IT-related services and solutions, generating substantial operating revenue from its core technology businesses in mainland China and the broader Asian market.

Average Trading Volume: 7,477,895

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$3.46B

For a thorough assessment of 0861 stock, go to TipRanks’ Stock Analysis page.