YUEXIU SERVICES (06626): Actively responding to industry adjustments and accelerating the development of value-added services.

Yuexiu Services (06626) announces that, based on the preliminary assessment of the unaudited consolidated management accounts as of December 31, 2025 (fiscal year 2025) and the information currently available to the board of directors, it is expected that the equity holders' share of profit for fiscal year 2025 will decrease by approximately 20% to 25% compared to the fiscal year ending December 31, 2024 (fiscal year 2024), while the core net profit is expected to decrease by approximately 45% to 50% compared to fiscal year 2024. Core net profit refers to the equity holders' share of profit excluding the impact of impairment of goodwill. The expected decrease in equity holders' share of profit and core net profit is mainly due to a decrease in gross profit margin, for the following reasons: (1) the reduction of high-margin value-added businesses (such as brokerage business) due to the deep adjustment in the real estate industry; (2) the gradual settlement of phase-wise hard decoration business resulting in a decrease in income and gross profit from this business; (3) continued investment costs to improve service quality, stabilize commercial property occupancy rates, leading to an overall increase in operational expenses; (4) increase in labor costs due to policy adjustments. Looking ahead to 2026, the company will continue to pursue high-quality long-term growth, actively respond to industry adjustments, expand its non-residential business scale with high quality, accelerate the adjustment of value-added businesses, cultivate profit growth drivers, achieve structural optimization and efficiency improvement, and take a solid step towards the vision of becoming a "trusted smart city service provider for customers."