UCD(01599) issues profit warning, expecting a net profit of approximately 466 million to 553 million yuan in 2024, a year-on-year decrease of about 39% to 49%.

UCD (01599) announced that it is expected to achieve a revenue of approximately RMB 8.222 billion to RMB 9.271 billion for the year 2024, a year-on-year decrease of around 11% to 21%; and it is expected to achieve a net profit of approximately RMB 466 million to RMB 553 million for the year 2024, a year-on-year decrease of around 39% to 49%. The board believes that the main reasons for the aforementioned decrease in revenue and net profit include: (i) adjustments in policies in the urban rail transit industry in recent years, corresponding adjustments in the number of urban rail transit lines approved by the government, and a decrease in the scale of the group's design business; (ii) the slowing down of market expansion for the group due to the impact of the macroeconomic situation, leading to a decrease in the conversion rate of new rail construction projects; and (iii) the Chongqing Yuxi Express construction project of the group has entered the trial operation phase, resulting in a corresponding decrease in construction revenue, etc.