Country Garden Services Holdings Company Limited (6098) released an announcement detailing an expected impairment of goodwill, profit warning for the 2025 financial year, and planned dividend distribution. According to the statement, the goodwill impairment amounts to approximately 968.90 million, mainly attributable to Country Garden Manguo Environment Technology Group Co., Ltd. Prolonged payment cycles and limited improvement in operating cash flow contributed to the strategic scaling-back of related businesses.
The group expects revenue for the twelve months ended 31 December 2025 to be around 48.20 billion to 48.50 billion, marking a rise from 43.99 billion in 2024. However, it anticipates an unaudited net profit of 450.00 million to 650.00 million, against 1.87 billion in 2024, due largely to increased credit impairment losses on trade receivables and lower gains on changes in fair value of contingent consideration. Net profit attributable to shareholders is projected at 500.00 million to 700.00 million, compared to 1.81 billion in 2024. The estimated core net profit attributable to shareholders is 2.40 billion to 2.70 billion, down from 3.04 billion in 2024.
Management expects the group’s gross profit to be roughly 8.20 billion to 8.70 billion. The unaudited net cash generated from operating activities is not less than 2.40 billion, with total bank deposits and structured deposits anticipated at no less than 17.70 billion as of 31 December 2025.
The board reaffirmed its 2025 dividend payout target, referencing 60% of the core net profit attributable to shareholders. Also, the group intends to distribute no less than 1.50 billion in dividends for 2026, subject to approvals and final results. Meanwhile, 87,996,000 shares have been repurchased on the open market for at least 500.00 million in total consideration through late February 2026.
The final audited results are pending and may differ from the preliminary estimates. Interested parties are advised to review the group’s annual results announcement, expected in late March 2026.