First Service Holding Limited Issues Significant Profit Warning for FY2025

Key Points from the Announcement

• First Service Holding Limited (Stock Code: 2107) expects a substantial increase in net loss for the financial year ended December 31, 2025.
• The company forecasts a net loss of not more than RMB40.0 million for FY2025, compared to a net loss of approximately RMB6.3 million in FY2024.
• This represents a significant deterioration in financial performance year-on-year.
• The main driver behind the increased losses is the recognition of provision for impairment losses on goodwill, particularly related to Qingdao Luohang Enterprises Management Co., Ltd., an acquired subsidiary.
• The subsidiary’s operating performance in 2025 did not meet expectations, and its future business development and profit recovery are anticipated to face ongoing challenges.
• The financial figures are based on a preliminary review of unaudited consolidated management accounts and may be subject to further adjustments.
• The audited annual results are expected to be published before the end of March 2026.

Details Investors Should Know

• Material increase in net loss: The anticipated loss for FY2025 is more than six times the loss reported in FY2024, which is highly material and likely to impact investor sentiment and share price.
• Impairment on goodwill: The impairment stems from underperformance and uncertain prospects at Qingdao Luohang Enterprises Management Co., Ltd., signaling potential issues with acquisition strategy and integration.
• Future uncertainty: The company has publicly acknowledged that the subsidiary’s future business development and profit recovery are expected to face challenges, suggesting limited visibility and confidence in a turnaround.
• Unaudited figures: The announcement is based on unaudited management accounts, meaning the final numbers could change upon completion of the audit.
• Publication timeline: The final audited results will be available before the end of March 2026, and investors should await these figures for more definitive information.

Potential Impact on Share Price

This announcement is highly price-sensitive. The projected significant increase in net loss, driven by impairment provisions, is likely to negatively affect investor confidence and could prompt downward pressure on the company’s share price. The challenges in future business development and profit recovery further compound concerns about the Group’s growth prospects.

Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of First Service Holding Limited until the detailed annual results are released.

Board and Executive Information

• Chairman: Zhang Peng
• Executive Directors: Liu Peiqing, Zhu Li, Wang Song
• Non-executive Directors: Zhang Peng, Long Han, Wang Ziming
• Independent Non-executive Directors: Sun Jing, Cheng Peng, Yang Xi

Expected Results Announcement

The company plans to publish its audited annual results for the year ended December 31, 2025, before the end of March 2026. Investors should await this announcement for the confirmed financial performance and further details.

Disclaimer: This article is based on preliminary unaudited information released by First Service Holding Limited and is intended for informational purposes only. Investors should not make investment decisions solely based on this article and are advised to consult the official audited results and seek professional advice before trading.

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