CC NEW LIFE (09983) issued a profit warning, expecting a year-on-year decrease of approximately 25% to 30% in shareholder's profit for the fiscal year 2025.

CC NEW LIFE (09983) announced that the unaudited net profit for the Group for the year ending December 31, 2025 is expected to decrease by approximately 27% to 32% compared to 2024, amounting to about RMB 2.382 billion. Meanwhile, the shareholders' share of profit for the year 2025 is expected to decrease by approximately 25% to 30% compared to 2024, amounting to about RMB 2.146 billion. The expected decrease in net profit and shareholders' share of profit is mainly attributed to the following factors: (a) an increase in financial and contract asset impairment losses for the year 2025 compared to 2024; (b) a decrease in the Group's gross profit margin for the year 2025 compared to 2024, mainly due to: (i) a decline in gross profit margin for the property management services segment, mainly due to increased costs incurred to improve customer satisfaction by providing higher quality services; (ii) contraction of high-gross margin services (community value-added services and non-owner value-added services) due to the impact of the real estate market downturn and weak consumer confidence in the mainland market. Nevertheless, excluding the net impairment losses on financial and contract assets, fair value gains or losses on financial assets measured at fair value and changes in fair value recognized in profit or loss, gains or losses on disposal of subsidiaries, equity-settled payments and their related tax effects, the shareholders' share of core net profit is expected to decrease by no more than 10% compared to 2024, amounting to approximately RMB 2.94 billion.