CC NEW LIFE (09983) has announced that the group's unaudited net profit for the year ending December 31, 2025, is expected to decrease by approximately 27% to 32% compared to the approximately RMB 238.2 million recorded in 2024. Furthermore, the profit attributable to shareholders for 2025 is projected to decline by about 25% to 30% relative to the approximately RMB 214.6 million reported in 2024.

The anticipated reductions in both net profit and profit attributable to shareholders are primarily attributed to the following factors: (a) an increase in the net impairment losses on financial and contract assets for 2025 compared to 2024; and (b) a decline in the group's gross profit margin for 2025, mainly due to: (i) a decrease in the gross profit margin of the property management services segment, caused by increased costs associated with providing higher quality services to enhance customer satisfaction; and (ii) a contraction in the group's high-margin services, namely community value-added services and non-property owner value-added services, influenced by the downturn in the real estate market and weak consumer confidence in the mainland market.

Despite these challenges, after excluding the impact of net impairment losses on financial and contract assets, fair value gains or losses on financial assets at fair value through profit or loss, gains or losses on the disposal of subsidiaries, share-based payments, and their related tax effects, the core profit attributable to shareholders is expected to decrease by no more than 10% compared to the approximately RMB 294 million reported for 2024.