HEVOL SERVICES Issues Profit Warning, Anticipates Annual Shareholder Loss of 57-67 Million Yuan

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Yesterday

HEVOL SERVICES (06093) announced that it expects the group's net loss after tax and the loss attributable to the company's shareholders for the year ending December 31, 2025, to be between approximately RMB 40.5 million to RMB 50.5 million and RMB 57 million to RMB 67 million, respectively. This contrasts with the group's net profit after tax and the profit attributable to shareholders of approximately RMB 86.6 million and RMB 54.4 million, respectively, for the year ended December 31, 2024. The decline is primarily attributed to several factors. Firstly, a decrease in gross profit margin resulted from investments in the preliminary stages of new property management projects to enhance market share and the lower gross profit margins of public building projects. Secondly, there was an increased provision for credit impairment on trade receivables and other receivables. Additionally, the company recognized one-time losses from the disposal of a 51% equity interest in Jiangsu Shenhua Times Property Group Co., Ltd., a limited company established under the laws of the People's Republic of China, and from the disposal of a 51% equity interest in Zhongshan Zhongzheng Property Management Co., Ltd., also a limited company established under Chinese law.

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