Central China Management Co Ltd (HKEX: 09982) has issued a profit warning, projecting a net loss of approximately RMB 20 million to RMB 35 million for the six months ending June 30, 2026.

This anticipated loss marks a sharp reversal from the net profit after tax of around RMB 37 million recorded during the same period in 2025.

The expected swing into the red is primarily attributed to the persistent weakness in the property market, which has significantly reduced the group's management service fee income.

Additionally, the company continues to suffer impairment losses on receivables, driven by heightened credit risks and slower collections amid the challenging operating environment.

Adopting a prudent approach, the group has re-assessed the credit risk of related financial assets using the expected credit loss model and has continued to make cautious impairment provisions during the period, which has negatively impacted its earnings performance.