HK-listed Zengame Technology hits 2-year low on weak profit forecast

Zengame Technology Holding

22/01/2025 04:34

** Shares of Chinese mobile games developer and operator
Zengame Technology Holding  2660.HK  drop as much as 13.6% to
HK$2.22, their lowest since January 2023
    ** Stock set for biggest one-day pct decline since March 22,
2024; on track to snap two straight sessions of gains
    ** Zengame forecasts its 2024 net profit to drop by 35%-45%
year-on-year amid a 15%-25% decline in revenue due to
lower-than-expected sales of new products, game features during
a downturn in the gaming market in 2024
    ** Company also expects a decline in gross profit margin of
5%-10% amid higher gaming operational costs
    ** Hang Seng Tech Index  .HSTECH  falls 2% and Hang Seng
Index  .HSI  eases 1.3%
    ** Stock dropped 51.4% last year
    
  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))