YUEXIU SERVICES (06626) has announced a preliminary assessment based on the group's unaudited consolidated management accounts for the fiscal year ending December 31, 2025 (FY2025), and information currently available to the board. The company expects profit attributable to equity holders for FY2025 to decrease by approximately 20% to 25% compared to the previous fiscal year ending December 31, 2024 (FY2024). Core net profit, which excludes the impact of goodwill impairment, is projected to decline by about 45% to 50% from FY2024 levels.

The anticipated decreases in both profit attributable to equity holders and core net profit are primarily attributed to a contraction in gross profit margin. This is due to several factors: (1) A reduction in high-margin value-added services, such as brokerage businesses, resulting from the profound adjustments within the real estate sector; (2) The gradual completion of settlements for phased hard decoration services for housing, leading to reduced revenue and gross profit from this segment; (3) Continued investment in costs to enhance service quality and stabilize occupancy rates for commercial projects, resulting in an overall increase in operating expenses; (4) Rising labor costs driven by policy adjustments.

Looking ahead to 2026, the group will continue to pursue high-quality, long-term growth. It plans to actively respond to industry adjustments, achieve high-quality expansion in its non-residential business segment, accelerate the restructuring of its value-added services, and cultivate new profit growth drivers. The aim is to realize structural optimization and efficiency improvements, taking a solid step towards its vision of becoming a "trusted smart city service provider."