HEVOL SERVICES issues profit warning, expecting the annual net loss attributable to shareholders to be between 57 million and 67 million, a shift from profit to loss compared to the same period last year.

HEVOL SERVICES (06093) announces that it is expected to incur a net loss before tax for the year ended December 31, 2025 ranging from approximately RMB 40.50 million to RMB 50.50 million and a loss attributable to shareholders of the Company ranging from approximately RMB 57.00 million to RMB 67.00 million. For the year ended December 31, 2024, the Group reported a net profit before tax of approximately RMB 86.60 million and a profit attributable to shareholders of the Company of approximately RMB 54.40 million. The decrease was mainly due to (1) lower gross profit margins in the initial stages of investment in new property management projects and public infrastructure projects to improve market share; (2) increased provision for credit impairment on trade receivables and other receivables; (3) a one-time loss from the sale of a 51% stake in Jiangsu Shenhua Times Property Group Co., Ltd. (a limited liability company established under the laws of the People's Republic of China); and (4) a one-time loss from the sale of a 51% stake in Zhongzheng Property Management Co., Ltd. in Zhongshan City (a limited liability company established under Chinese law).