Zhong An Group Limited Issues Significant Profit Warning for FY2025 – Major Reversal from FY2024 Profit

Key Highlights

• Profit Warning: Zhong An Group Limited has issued a profit warning for the financial year ended 31 December 2025 (FY2025).
• Expected Net Loss: The Group anticipates recording a net loss of not more than approximately RMB940 million for FY2025.
• Major Reversal from FY2024: This represents a significant reversal from a net profit of approximately RMB218 million in FY2024.

Details and Analysis

The Board of Directors of Zhong An Group Limited announced, based on a preliminary review of unaudited consolidated management accounts, that the company expects to report a substantial net loss for FY2025. This marks a dramatic shift from the net profit achieved in the previous year.

Key reasons for the expected loss include:

1. Decrease in Delivered Properties: The total gross floor area of properties delivered in FY2025 decreased by over approximately 35% compared to FY2024. This has resulted in a corresponding decline in recognized sales revenue for the year.
2. Lower Average Selling Price & High Costs: The average selling price per square meter of properties delivered was relatively low in FY2025, while the average sales cost per square meter remained high. This led to a significant drop in both gross profit and gross profit margin – gross profit declined by approximately 72% and gross profit margin dropped by around 9 percentage points compared to FY2024.
3. Share of Losses from Associates and Joint Ventures: The Group’s share of loss from its associates and joint ventures in FY2025 contrasts with a share of profits in FY2024, further exacerbating the bottom line.

Implications for Shareholders and Investors

• Price Sensitive Information: The anticipated swing from profit to a substantial loss is a material event that is highly likely to affect Zhong An Group’s share price. Investors should consider the severe deterioration in financial performance, the operational challenges, and the external market factors impacting the company.
• Uncertainties Remain: The information is based on preliminary unaudited figures and may be subject to adjustments. The finalized results are expected to be published by the end of March 2026.
• Board Composition: As of the date of the announcement, the Board consists of five executive directors and three independent non-executive directors, maintaining a mix of leadership and oversight.

Important Advice

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Zhong An Group Limited given the significant expected downturn in financial results and the potential impact on share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all relevant disclosures and seek professional guidance before making investment decisions. The final audited results may differ from the preliminary figures discussed herein.

View ZHONGAN GROUP Historical chart here