Impression Dahongpao Announces 2026 Interim Results

Financial Highlights:

1.Stable financial foundation and healthy cash flow: Despite the impact of one-off factors such as extreme weather, the Group recorded revenue of RMB47.14 million for the period; net profit attributable to shareholders of the parent company was RMB2.54 million; and net cash flows generated from operating activities reached RMB6.79 million, demonstrating strong self-sustaining cash generation capabilities and sound cash flow position even under adverse conditions.

2.Short-term disruptions do not impair long-term value; cost fluctuations represent a reasonable transition: The performance volatility during the period mainly stemmed from three uncontrollable or one-off factors: (i) extreme heavy rainfall (total rainfall increased by approximately three times year-on-year) which constrained outdoor performances; (ii) the fading of the inaugural-year concentrated viewing benefits for the "Moonlight Wuyi" project and the rise in depreciation and amortisation costs due to differences in operating cycles; and (iii) changes in cooperation agreements for the cultural tourism town. All these factors are transitional in nature and have not undermined the market appeal of the Group's core IP.

3.Strategic launch of "Wuyi Guanwu" to unlock diversified growth: During the period, the Group's wholly-owned subsidiary signed the Mount Wuyi Impression Jianzhou Project Operation Investment and Management Cooperation Agreement, with the project tentatively named "Wuyi Guanwu". This project will deeply integrate Wuyi Mountain's local culture with modern immersive experiences, enriching the Group's "day-and-night activity linkage" ecosystem and injecting strong momentum for future development.

4.Steady progress across three core business segments; Global Offering proceeds empower industrial upgrades: The Group continues to deepen its three core businesses – "shows and performance services", "Impression Cultural Tourism Town" and "Chatang Hotel". Leveraging the proceeds from the Global Offering, the Group is accelerating the iterative upgrade of performance quality, replication of projects in other regions, and diversified business deployment.

HONG KONG, August 18, 2026 - (ACN Newswire) - Impression Dahongpao Co., Ltd. (HKEX Stock Code: 2695; NEEQ Code: 870608, “Impression Dahongpao” or the “Company”, together with its subsidiaries, the “Group”), a leading large-scale cultural tourism performance and integrated leisure resort service provider in China, is pleased to announce its unaudited interim results for the six months ended 30 June 2026 (the “Period”). In the face of a complex and volatile external environment and extreme weather challenges in the first half of 2026, the Group maintained stable operations in its core business while proactively adjusting its business structure with a forward-looking strategic vision, making significant moves to develop new cultural tourism upgrade projects.

During the Period, the Group recorded revenue of RMB47.14 million, representing a slight decrease compared with the same period of 2025; net profit attributable to shareholders of the parent company was approximately RMB2.54 million; and gross profit margin for the Period was 24.74%. Net cash flows generated from operating activities reached RMB6.79 million, providing a solid foundation for the Group to weather market fluctuations and invest in future growth. Meanwhile, the Group’s total assets stood at RMB481.81 million, and the gearing ratio was strictly controlled at a low level of 29.35%, demonstrating the Group’s excellent risk management capabilities and prudent financial strategy.

The decline in performance in the first half of 2026 was primarily attributable to the combined effect of exceptional one-off and non-recurring factors. In the first half of this year, the Wuyi Mountain region experienced total rainfall of 4,201mm, an increase of approximately three times compared with the same period, and frequent extreme rainstorms directly led to the cancellation of performances or a short-term decline in attendance rates. Secondly, the Group’s “Moonlight Wuyi” project, which premiered in 2025, received strong support from trade unions and the education system in its inaugural year, benefiting from one-off promotional support which did not continue during the Period. At the same time, the extended operating period of “Moonlight Wuyi” during the Period directly resulted in a corresponding increase in rigid costs, including depreciation of right-of-use assets, depreciation of fixed assets, amortisation of long-term deferred expenses, as well as utilities and staff salaries.

Continuous optimisation of business layout to consolidate diversified growth foundation

In terms of business optimisation, the Group has implemented a series of cost-reduction and efficiency-enhancement measures for “Moonlight Wuyi”. These include optimising the pricing system, introducing tiered incentive policies for groups and study tours to activate channel momentum, partnering with cultural tourism and tea enterprise live-streaming rooms to expand online sales channels, and innovating NPC interactive check-in and new media seeding marketing models to boost market visibility. At the same time, the Group strictly controls costs, precisely adjusts performance schedules, and centrally deploys performers from the Impression Art Troupe to reduce labour costs.

In addition, the Chatang Hotel has completed a brand upgrade and was renamed “Impression Dahongpao Qiyuan” to strengthen the synergy with the core performance brand. The Group has introduced a professional marketing team to focus on the online market, revitalised idle spaces for external leasing to generate stable ancillary income, and launched “performance + hotel” package tickets for joint marketing. Meanwhile, the Group continues to reduce losses, optimise its asset structure, and drive a steady transformation with improved quality and efficiency.

Signing of the Mount Wuyi Impression Jianzhou Project Operation Investment and Management Cooperation Agreement to build a new cultural tourism ecosystem engine

While actively responding to short-term fluctuations, the Group has not slowed down its pace of expansion and upgrading. During the Period, the Group achieved a milestone breakthrough in its business development – its wholly-owned subsidiary formally signed the “Wuyi Impression Jianzhou (Upgrade and Renovation) Project Operation, Investment and Management Cooperation Agreement”, with the project tentatively named “Wuyi Guanwu”. This project represents the Group’s core strategic deployment to align with the national trend of cultural tourism consumption upgrading and to deepen the excavation of Wuyi Mountain’s local culture. The “Wuyi Guanwu” project is not merely a hardware renovation, but a deep integration of culture, business and tourism. It aims to comprehensively upgrade the existing commercial area into a high-quality cultural tourism block integrating “intangible cultural heritage experiences, immersive performances, national trendy cultural and creative products, specialty dining and themed accommodation”.

In the past, the Group’s revenue was heavily dependent on the nighttime “Impression Dahongpao” scenery show. The implementation of the Impression Jianzhou project will greatly enrich tourists’ daytime activity options, successfully creating a full-day tourism loop of “visit Jianzhou and experience culture by day, watch Impression and enjoy the grand show by night”, achieving “day-night linkage” and effectively extending tourist stay in Wuyi Mountain. At the same time, through introducing high-quality self-operated and co-operated commercial formats, the Group will break through the limitations of a single ticket-based economy. The upgraded “Wuyi Guanwu” will generate substantial high-margin secondary consumption scenarios including dining, cultural and creative products, and accommodation, comprehensively optimising the Group’s revenue structure. The signing of this agreement also marks a new milestone for the Group’s operational investment and management capabilities. The Group will export its proven IP operation standards and commercial management systems, which will not only enhance the overall tourism destination image of Wuyi Mountain, but also accumulate valuable practical experience for the Group’s future “replication in other regions” and asset-light expansion.

Deepening the three core segments with a clear long-term development blueprint

Looking ahead, the Group will continue to maintain its three core segments: (i) shows and performance services; (ii) Impression Cultural Tourism Town business; and (iii) Chatang Hotel business. In terms of core business development, the Group will leverage the proceeds from the Global Offering as a driving force to reinforce its solid foundation in daily operations, continuously strengthen its core IP competitiveness, and promote iterative upgrades in performance quality. At the same time, the Group will accelerate the deployment of diversified businesses, with a strategic focus on the innovative development of the “Impression Cultural Tourism Town” to further enrich tourists’ leisure options and the overall tourism ecosystem. In addition, exploring replication paths in other regions will be one of the Group’s key strategic directions. The Company plans to export its proven operational management models to broader markets and actively explore replication in other regions, striving to create new growth drivers. Overall, the Group will strengthen operational support, continuously enhance operational efficiency and visitor experience, aiming to achieve an organic integration of short-term stability and long-term development.

About Impression Dahongpao Co., Ltd.

Impression Dahongpao Co., Ltd. (Stock Code: 2695; NEEQ Code: 870608) is a state-owned cultural tourism service enterprise, listed on the NEEQ in 2017. The Company’s business comprises three main segments: (i) shows and performance services; (ii) Impression Cultural Tourism Town business; and (iii) Chatang Hotel business. Among them, the Company’s signature show, the “Impression Dahongpao” scenery show, serves as the cornerstone of its business and is the only live performance conducted within a UNESCO World Natural and Cultural Heritage site, and the only large-scale outdoor scenery show intertwined with the history of traditional Chinese tea culture. In 2024, “Impression Dahongpao” ranked third among all tourism scenery shows in China and tenth among all cultural tourism performances in terms of box office revenue¹. In terms of sales revenue generated from cultural tourism performance programmes, the Company ranked eighth in China’s cultural tourism performance market in 2024¹.

¹ According to Frost & Sullivan

This press release is issued by Brilliant Monkey Financial Communications Limited on behalf of Impression Dahongpao Co., Ltd.. For media enquiries, please contact:

Sabrina / Christopher
Tel: 9464 8907 / 5592 6231
E-mail: sabrinawong@bmonkey.com.hk / christopher@bmonkey.com.hk