EVER REACH GP (03616) issues a profit warning, expecting a net loss of approximately 200 million to 260 million yuan for the year 2025, excluding taxes.

EVER REACH GP (03616) announced that the board of directors expects the revenue for the fiscal year ending December 31, 2025 (FY 2025) to be approximately 2.4 billion to 2.6 billion yuan, a decrease of about 5.9% to 13.1% compared to the revenue of approximately 2.8 billion yuan for the fiscal year ending December 31, 2024 (FY 2024). The board also expects a post-tax loss of between 200 million and 260 million yuan for FY 2025, whereas a post-tax loss of 264 million yuan was recorded for FY 2024. The expected decrease in revenue for FY 2025 is mainly due to the continued sluggishness of the Chinese property market throughout the year. Despite the introduction of various support measures, market sentiment and buyer confidence remain low, leading to a slower-than-expected recovery in transaction volumes and prices. The expected loss for FY 2025 is primarily due to an increase in provisions made for the anticipated decline in the value of properties held for sale or under development during the fiscal year, leading to a decrease in gross profit margins.