Hevol Services Group Co., Limited (Hevol Services) released an inside-information announcement on 23 March 2026, warning that it expects to swing to a net loss for the year ended 31 December 2025.

Based on unaudited management accounts, management forecasts a net loss after tax of RMB40.50 million to RMB50.50 million for FY2025, versus a net profit of RMB86.60 million in FY2024. Loss attributable to shareholders is projected at RMB57.00 million to RMB67.00 million, compared with a profit attributable to shareholders of RMB54.40 million a year earlier.

Management cites four principal factors for the anticipated downturn: 1. Gross profit margin erosion stemming from early-stage investment in new property-management projects and lower-margin public-building contracts. 2. Higher provisions for credit impairment on trade and other receivables. 3. A one-off loss on the disposal of a 51% stake in Jiangsu Shenhua Times Property Group Co., Ltd. 4. A one-off loss on the disposal of a 51% stake in Zhongshan Zhongzheng Property Management Co., Ltd.

The company is finalising its audited results, scheduled for release by end-March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities until the definitive figures are published.