Central China New Life Limited (CC NEW LIFE, 09983) has released an inside information announcement warning of a sharp earnings contraction for the financial year ended 31 December 2025.

According to preliminary, unaudited data, the Group anticipates: • Consolidated net profit of approximately RMB162.00 million–RMB173.90 million, representing a year-on-year decline of about 27%–32% from RMB238.20 million in 2024. • Profit attributable to shareholders of roughly RMB150.22 million–RMB160.95 million, down 25%–30% from RMB214.60 million in 2024. • Core net profit attributable to shareholders—excluding impairment, fair-value movements, disposals, share-based payments and related tax effects—is expected to contract by no more than 10% versus RMB294.00 million in 2024.

Management cites two principal factors for the earnings downturn: 1. A rise in net impairment losses on financial and contract assets during 2025. 2. A lower gross profit margin, driven by: – Higher service-quality costs within the property-management segment; – Reduced contribution from higher-margin community value-added services and value-added services to non-property owners amid a weak real-estate market and subdued consumer confidence.

The figures are based on internal management accounts and remain subject to audit and potential adjustments. The full audited results for FY2025 are scheduled for release in March 2026.

Investors are advised to exercise caution when dealing in CC NEW LIFE shares until the final results are published.