Jujiang Construction Group Issues Profit Warning for FY2025

Key Highlights

• Significant Expected Loss: Jujiang Construction Group Co., Ltd. has announced a profit warning, expecting to record a net loss between RMB42.0 million and RMB50.0 million for the financial year ended 31 December 2025. This is a sharp reversal from a net profit of approximately RMB13.7 million in 2024.
• Revenue and Gross Profit Decline: The Group anticipates a decrease in both revenue and gross profit by approximately 30% to 40% year-on-year. For 2024, revenue and gross profit were about RMB6,780.7 million and RMB277.5 million, respectively.
• Market Conditions: The downturn is mainly due to a general slump in the property market and a reduction in the net value of new projects undertaken during 2025.
• Deferred Tax Expense Increase: There has been a significant increase in deferred tax expenses as a result of written-down and non-recognition of certain deferred tax assets, attributed to insufficient future taxable profits.

Details for Investors and Shareholders

This profit warning represents a material shift in the Group’s financial performance and is highly price sensitive. The anticipated net loss marks the first time in recent years the company moves from profitability to loss, which may impact investor sentiment and share price.

The Board emphasizes that the figures are based on preliminary unaudited consolidated management accounts and may be subject to adjustments. The actual annual results for 2025 will be disclosed by or before 31 March 2026. Investors are advised to await the official audited figures for further clarity.

The company attributes the expected loss mainly to:

• Market Downturn: The property market’s general decline has led to fewer and lower-value new projects.
• Tax Implications: Increased deferred tax expenses from written-down and non-recognition of deferred tax assets, reflecting weaker future profitability prospects.

Board Composition

• Executive Directors: Mr. Lyu Yaoneng (Chairman), Mr. Lyu Dazhong, Mr. Li Jinyan, Mr. Lu Zhicheng, Mr. Shen Haiquan, Mr. Zheng Gang
• Independent Non-executive Directors: Mr. Ma Tao, Mr. Wang Xinglong, Ms. Lam Fei Sui

Investor Advisory

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of the Company. The forthcoming official results may impact the share price further, depending on the final confirmed figures and any additional disclosures.

The profit warning, especially with such a significant swing from profit to loss and underlying factors impacting future profitability, is likely to move the market and is of high relevance to investors.

Disclaimer

This article is based on preliminary, unaudited information provided by Jujiang Construction Group Co., Ltd. The actual financial performance and future prospects of the company may differ from the statements herein. Investors should review the official annual results announcement and consult with financial advisors before making investment decisions.

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