Shanghai Industrial Urban Development Group Limited Issues Significant Profit Warning for FY2025

Key Highlights

• Substantial Loss Expected: The Board of Shanghai Industrial Urban Development Group Limited (“SIUD” or the “Company”) has issued a profit warning, announcing that it expects a significant increase in net losses for the financial year ended 31 December 2025. The anticipated loss attributable to owners is projected to be in the range of HK\$900 million to HK\$1,000 million, a steep rise compared to the loss of HK\$331.2 million recorded for the year ended 31 December 2024.
• Sharp Decline in Revenue: The Company forecasts a decrease in total revenue by approximately 65% to 75% compared to the previous year. This dramatic drop is mainly attributed to a reduction in sales delivered by several projects.
• Drop in Gross Profit: Gross profit for FY2025 is also expected to decline by around 60% to 70% year-on-year. This decrease is primarily the result of a significant reduction in sales of commodity housing projects delivered during the year.

Details and Implications for Shareholders

The preliminary figures are based on the Group’s unaudited consolidated management accounts and the information currently available. These accounts are still subject to review by the Company’s auditors. The final results for FY2025 will be published in the Company’s official results announcement, expected by the end of March 2026.

Potential Price Sensitivity:

• The magnitude of the expected loss, which is nearly three times that of the previous year, and the pronounced decline in both revenue and gross profit, are material developments that could significantly impact investor sentiment and, consequently, the Company’s share price.
• The profit warning is issued in accordance with Hong Kong listing regulations to ensure shareholders and potential investors are fully informed of the Company’s deteriorating financial position.
• The Company explicitly advises shareholders and potential investors to exercise caution when dealing in its securities due to the ongoing finalization of its financial results.

Additional Information

• The profit warning was authorized by the Board of Directors, with Mr. Huang Haiping serving as Chairman. The Board currently consists of both executive and independent non-executive directors.
• The announcement reaffirms the Company’s commitment to regulatory transparency and timely disclosure of price-sensitive information.

Conclusion

This profit warning represents a significant development for SIUD and its investors. The anticipated magnitude of losses, driven by drastic drops in revenue and gross profit, signals continued challenges in the real estate sector and in the Company’s project delivery. Investors should closely monitor the Company’s final results announcement and exercise caution in trading SIUD shares until further financial details are disclosed.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should refer to the Company’s official disclosures and consult with their professional advisors before making investment decisions. The information is based on preliminary unaudited management accounts and may be subject to change upon final audit.

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