Gangyu Smart Urban Services Issues Significant Profit Warning for FY2025

Key Highlights

• Gangyu Smart Urban Services Holding Limited has issued a profit warning for the fiscal year ended 31 December 2025.
• The company expects a substantial decline in profit before taxation of between 55% and 65% compared to the previous year.
• Profit before tax for the year ended 31 December 2024 was approximately HK\$53.0 million.
• The expected profit decline is based on preliminary unaudited management accounts and information currently available to the Board.

Details of Expected Profit Decline

According to the Board of Directors, the anticipated decrease in profit is attributed to several key factors:

1. Increase in Loss from Fair Value Changes on Investment Properties:
   • The Group expects an additional loss of approximately HK\$14.6 million due to adverse fair value changes on its investment properties.
2. Absence of Compensation Income:
   • In FY2024, the company received compensation income of approximately RMB4.7 million (around HK\$5.1 million) related to the termination and delayed delivery of 47 commercial units in Shijiazhuang City, Hebei Province, PRC.
   • This income will not recur in FY2025, negatively impacting the results.
3. Decrease in Bank Interest Income:
   • There is an expected decline in bank interest income totaling approximately HK\$5.3 million for FY2025.

Important Shareholder Considerations

• The announcement is based on preliminary and unaudited financial information, and the figures are subject to further adjustment and review.
• The audit committee has not yet reviewed these preliminary accounts.
• The company will release its audited and final annual results on 27 March 2026.
• Given the significant profit warning, shareholders and potential investors should exercise caution when dealing in the company’s securities.
• This development is potentially price-sensitive and may lead to volatility in the company’s share price upon market reaction.

Board Composition

As of the date of the announcement, the Board comprises:

• Three executive directors: Mr. Mo Yueming (Chairman & Executive Director), Ms. Hao Ying, and Mr. Xue Fei
• One non-executive director: Mr. He Qi
• Three independent non-executive directors: Mr. Lin Hua Rong (Harry), Ms. Juliett Jing Dong, and Mr. Tam Kam Shing (Chris)

Exchange Rate Note

For the purpose of this announcement, the company used an exchange rate of RMB1.00 = HK\$1.09 for FY2025.

Conclusion

Investors and shareholders should closely monitor the upcoming annual results announcement and be aware of the potential for significant share price movements due to the expected decline in profitability.

Disclaimer: This article is a summary and analysis of Gangyu Smart Urban Services Holding Limited’s profit warning announcement. It is for informational purposes only and does not constitute financial advice. Investors should read the official filings and consult with financial professionals before making any investment decisions. The actual financial results may differ from the preliminary figures provided in this article.

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