Yuexiu Services Group Limited (06626) has issued a profit warning based on preliminary assessment of its unaudited consolidated management accounts for the year ended 31 December 2025. According to the announcement, profit attributable to equity holders is expected to decline by approximately 20% to 25% compared to the same period in 2024, while core net profit (excluding the impact of goodwill impairment) may decrease by about 45% to 50%.

The announcement indicates that gross profit margin was affected by several factors. These include the contraction of high-margin value-added services, such as brokerage, due to a significant real estate sector downturn. Additionally, the completion of a specific phase of non-recurring home decoration business led to lower revenue and gross profit. Overall operational costs increased, driven by expenses aiming to enhance service quality and stabilize occupancy rates in commercial projects. Changes in labor-related policies also contributed to a rise in labor costs.

Information in the announcement is based on data available at the time of publication and is subject to finalization. Shareholders and potential investors are advised to remain cautious when dealing in the company’s securities. The Board states that while the Group aims to manage the current challenges, it intends to pursue long-term development by expanding non-residential business and accelerating value-added services to optimize operations as it works toward becoming a trusted smart city service provider.