Zhongtian Construction (Hunan) Group Limited Issues Significant Profit Warning for FY2025

Hong Kong – Zhongtian Construction (Hunan) Group Limited (Stock Code: 2433) has issued a profit warning, alerting shareholders and potential investors to a substantial increase in its expected net loss for the financial year ended 31 December 2025. This announcement follows a preliminary review of the Group’s unaudited consolidated management accounts and is made in accordance with the Hong Kong Stock Exchange Listing Rules and relevant disclosure obligations.

Key Points of the Profit Warning

• Expected Net Loss: The Group anticipates recording a net loss in the range of RMB70 million to RMB78 million for FY2025. This represents a significant increase compared to the net loss of approximately RMB26.4 million for FY2024.
• Sharp Decline in Revenue: Revenue is projected to fall to around RMB586.3 million for FY2025, down from RMB930.8 million in the previous year. This decrease is primarily attributed to an overall economic slowdown and a reduction in construction projects undertaken by the Group.
• Substantial Increase in Impairments: Impairment on financial and contract assets (net) is expected to rise sharply to approximately RMB74.0 million, compared to RMB37.6 million in FY2024. This is mainly due to prolonged settlement periods from customers, which have led to higher expected credit loss provisions.

Shareholder & Price-Sensitive Considerations

• Significant Financial Deterioration: The magnitude of the expected loss and the drivers behind it—especially the decrease in revenue and increase in impairments—are material adverse developments. These may negatively impact investor sentiment and pressure the share price.
• Ongoing Finalization of Results: The figures disclosed are preliminary and based on unaudited management accounts. The final audited results could differ, and will be released in the Group’s annual results announcement, expected by the end of March 2026.
• Caution Advised: Shareholders and investors are explicitly advised to exercise caution when dealing in the shares of the Company, as the actual financial results may differ once the audit is complete.

Board Statement and Next Steps

The Board, led by Chairman and Executive Director Mr. Yang Zhongjie, has noted that the Company is still finalizing its results for the year. The current information is based on unaudited figures and may be subject to adjustments following review by the independent auditor and the audit committee. The Group will provide further details in its official annual results announcement by the end of March 2026.

The Board currently comprises Mr. Yang Zhongjie as Chairman and executive Director; Mr. Liu Xiaohong, Mr. Chen Weiwu, and Mr. Min Shixiong as executive Directors; and Dr. Liu Jianlong, Ms. Deng Jianhua, and Mr. Lau Kwok Fai Patrick as independent non-executive Directors.

Conclusion

The announcement contains highly material and potentially price-sensitive information regarding Zhongtian Construction (Hunan) Group Limited’s financial performance. The anticipated sharp increase in net loss, driven by a drastic fall in revenue and a surge in impairment provisions, signals a challenging operating environment and may have a notable impact on the Company’s share price. Investors are urged to follow forthcoming disclosures closely and act with caution.

Disclaimer: The above article is based on unaudited management accounts and preliminary Board assessments as disclosed by Zhongtian Construction (Hunan) Group Limited. Actual results may differ. This article does not constitute investment advice. Investors should exercise caution and consult professional advisers before making investment decisions.

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