Dongyuan Renzhi Services (02352.HK) issued a profit warning, expecting a mid-term profit attributable to shareholders of between 7 million and 10 million yuan.

Zhitong Finance APP reported that Dongyuan Renzhi Services (02352.HK) announced that the Group expects to record a profit attributable to the owners of the company ranging from RMB 7 million to RMB 10 million for the six months ending June 30, 2026 (the Current Period), compared to an attributable profit of approximately RMB 25.8 million for the six months ending June 30, 2025. The decrease in attributable profit is mainly due to (a) the Group's focus on a high-quality development path, continuously optimizing its business structure, resulting in a temporary decline in revenue scale while new development projects are still in the ramp-up phase and have not yet generated significant revenue and gross profit contributions, leading to a reduction in gross profit for the Group during this period; and (b) a decrease in other income during this period, which is due to the one-time gains recognized from the acquisition of Chengdu Dongyu Hong Commercial Management Co., Ltd. at the beginning of 2025, involving the derecognition of right-of-use assets and related lease liabilities. This one-time gain will not occur during this period.