Shouhui Group Limited (02621) has alerted investors that, despite an expected swing to profitability in FY2025, adjusted earnings are projected to decline.

Key highlights • FY2025 reported net profit is expected to reach RMB780 million–RMB800 million, a turnaround of RMB916 million–RMB936 million from the FY2024 net loss. • Management attributes the swing mainly to a RMB964 million gain on changes in the carrying amount of financial instruments, compared with a loss on the same item in FY2024. • Adjusted net profit (excluding share-based compensation, listing expenses and fair-value changes of financial instruments) is forecast at RMB186 million–RMB206 million, down RMB36 million–RMB56 million year-on-year. • Revenue is projected at RMB1.46 billion–RMB1.48 billion, up RMB68 million–RMB88 million versus FY2024. • Costs and expenses are expected to rise by RMB104 million–RMB124 million, outpacing revenue growth. • Management cites macro-economic uncertainty, slower consumer demand in financial services, lower insurance brokerage rates under industry policy changes, and more intense market competition as primary headwinds to adjusted profitability.

Operational outlook The Board states that the Group’s overall operations, financial position and cash flow remain healthy. Final audited results for FY2025 are scheduled for release by end-March 2026.

Investors are advised to exercise caution when dealing in the company’s securities.