Strawbear Entertainment Group has issued a profit warning for the first half of 2025, indicating a significant downturn in its financial performance. The company expects to record a consolidated net loss attributable to shareholders ranging from approximately RMB3.5 million to RMB8.0 million, a sharp decline from the RMB29.9 million net profit reported in the same period in 2024. Additionally, the adjusted net loss is projected to be between RMB2.9 million and an adjusted net profit of RMB1.6 million, compared to an adjusted net profit of RMB37.9 million in the previous year. The decline is primarily attributed to a decrease in revenue due to the broadcast of fewer episodes, as the company focused on "boutique and premium" innovative episodic content with a smaller number of episodes, while operating costs remained stable. Shareholders and potential investors are advised to exercise caution when dealing with the company's shares.
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