Zhongshen Jianye Holding Limited Issues Supplemental Profit Warning for FY2025

Key Points from the Announcement

• Significant Loss Expected: Zhongshen Jianye Holding Limited (“the Company”) has issued a supplemental profit warning for its financial year ending 2025 (FY2025), alerting shareholders and investors that it expects to record a loss attributable to owners of the Company of approximately RMB 37 million.
• Primary Reasons for Loss:
  • Decrease in Gross Profit: The Company has experienced a notable reduction in gross profit margins during FY2025.
  • Increase in Impairment Losses: There has been a rise in impairment losses on trade receivables and contract assets, further impacting the bottom line.
• Change from Previous Guidance: This announcement supplements a previous profit warning issued on 28 January 2026, adding further detail and clarity on the factors contributing to the loss.
• Financials Not Yet Audited: The loss figure is based on the Group’s latest unaudited consolidated management accounts and may be subject to adjustments as the annual results are finalized.
• Timetable for Results: The final audited annual results for FY2025 are expected to be published on 17 March 2026.

Important Information for Shareholders

• Potential Impact on Share Price: The expected loss represents a turnaround from profit to loss, which could be a key price-sensitive event for shareholders and prospective investors. The decrease in gross profit and increase in impairment losses signal underlying challenges in the business environment or in the Company’s operations.
• Uncertainty Remains: As the figures are unaudited and may be subject to changes, there is an element of uncertainty that investors should be aware of pending the release of the final results.
• Exercise Caution: The Company specifically advises shareholders and investors to exercise caution when dealing in the shares, given the current situation and the potential for further updates or changes when the final results are announced.

Detailed Context and Board Composition

The announcement was made in accordance with the Hong Kong Stock Exchange Listing Rules and Inside Information Provisions. The Board of Directors is led by Chairman and Executive Director Mr. Sang Xianfeng, with executive director Mr. Xian Yurong, and independent non-executive directors Ms. Liu Zhihong, Mr. Zeng Qingli, and Mr. Xie Huagang.

The Company is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange under stock code 2503.

Conclusion

The disclosure of an expected net loss and the factors behind it are material developments that could influence the Company’s share price in the short term. Investors are strongly advised to monitor the situation closely and await the publication of the audited annual results for a clearer picture of the Company’s financial health.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct their own research or consult professional advisors before making any investment decisions. The information is based on preliminary unaudited figures and may change once the audited results are announced.

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