MemeStrategy (2440) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 40.3% YoY to RMB58.9m, mainly on lower IoT demand; cultural collectibles generated RMB1.8m of first-time revenue.

• Net loss widened to RMB157.8m from RMB77.5m, driven largely by RMB108.7m of non-cash expected credit loss impairment on receivables.

• Strategy expanded into cultural collectibles, digital assets, AI and Web3 alongside established IoT operations.

Financial highlights

• Revenue RMB58.884m vs RMB98.580m; cost of sales RMB57.665m vs RMB99.036m.

• Gross profit RMB1.219m vs gross loss RMB0.456m; gross margin 2.1% vs negative 0.5%.

• Loss before tax RMB157.778m vs RMB70.426m; net loss RMB157.764m vs RMB77.527m.

• Basic and diluted loss per share RMB48.55 cents vs RMB29.41 cents; 2024 weighted-average shares restated for the August 2025 rights issue.

• Total comprehensive expense RMB171.680m, including RMB13.513m fair-value loss on FVTOCI equity investments.

Outlook and guidance

• 2026 priorities: invest in AI, blockchain, digital assets and cultural collectibles; apply new technologies to Web3 projects and complement IoT capabilities.

• Continue prudent allocation to high-potential digital assets, diversify revenue and pursue growth drivers; rights issue and share placement proceeds provide funding for initiatives.