A-LIVING (03319) Announces Profit Growth Expecting to Achieve a Mid-term Net Profit of Approximately 300-400 Million RMB, Turning Loss into Profit Year-on-Year.

A-LIVING (03319) announced that the unaudited attributable profit of the group for the six months ended June 30, 2025 is expected to be between approximately RMB 3.00 billion and RMB 4.00 billion, while the unaudited attributable loss for the six months ended June 30, 2024 was RMB 16.3 billion. The expected increase in profit is mainly attributed to: In the same period of 2024, the company made significant provisions for impairment of trade receivables from related parties. Since the second half of 2024, the company has effectively controlled the balance of trade receivables from related parties and real estate enterprises through revising contract credit terms, adjusting business models, actively seeking debt-equity swaps, and initiating lawsuits. For the six months ended June 30, 2025, the company expects no significant provision for impairment of trade and other receivables from related parties. The company focuses on operating profit and cash flow, strictly controlling the value-added extension services related to real estate, ensuring only high-quality businesses with stable cash flows; optimizing the project structure for property management and urban services, ensuring stable operating profit and cash flow for projects. The company expects an improvement in operating cash flow compared to the same period in 2024.