UCD (01599) issues profit warning, expects mid-term net profit to decrease by approximately 31% to 41% year-on-year.

UCD (01599) announced that it is expected that the Group will achieve a revenue of approximately RMB 3.385 billion to RMB 3.803 billion in the first half of 2025, a decrease of approximately 9% to 19% compared to the revenue of approximately RMB 4.179 billion in the first half of 2024. The Group is also expected to achieve a net profit of approximately RMB 0.219 billion to RMB 0.256 billion in the first half of 2025, a decrease of approximately 31% to 41% compared to the net profit of approximately RMB 0.371 billion in the first half of 2024. The Board of Directors believes that the main reasons for the decrease in revenue and net profit mentioned above include (i) a decrease in the conversion rate of new rail construction projects due to the impact of the macroeconomic situation, (ii) adjustments in policies in the urban rail transit industry in recent years, resulting in corresponding adjustments to the number of urban rail transit lines approved by the government, and a decrease in the Group's design business scale, and (iii) the Group's Chongqing Yuxi Express construction project has entered the operation period, leading to a decrease in construction revenue.