Dowell Service Group Co. Limited Issues Positive Profit Alert for Fiscal Year 2025

Key Highlights from the Announcement

• Significant Turnaround: Dowell Service Group Co. Limited (“Dowell” or “the Company”) has announced that it expects to record a notable profit for the financial year ended 31 December 2025, reversing from a substantial loss in the previous year.
• Estimated Profit Range: The group anticipates its net profit to be between RMB 20.0 million and RMB 40.0 million for FY2025.
• Year-on-Year Improvement: This is a significant improvement compared to the loss of approximately RMB 61.6 million reported for the year ended 31 December 2024.
• Reason for Improvement: The positive turnaround is mainly attributed to the absence of significant impairment provisions for trade receivables in FY2025, whereas the prior year saw substantial impairment provisions related to receivables from real estate developer customers and certain third-party customers.

Details Investors Should Note

• Unaudited Figures: The profit alert is based on the Group’s unaudited consolidated management accounts for FY2025 and current information available to the Board. The figures may be subject to changes following the external auditor’s review and audit committee assessment.
• Potential for Share Price Movement: This marked turnaround from a significant loss to a profit could be a price-sensitive event and may lead to positive investor sentiment and share price movement.
• Impairment Provisions: The main factor for the prior year’s loss was the heavy impairment provision on trade receivables from real estate and third-party customers. The absence of similar provisions in 2025 resulted in a much healthier bottom line, reflecting improved receivables risk and possibly better collection policies or customer profiles.
• Upcoming Results Announcement: Investors should be aware that the actual audited results for FY2025 may differ from these estimates. The final results announcement is expected in late March 2026.
• Management Team: The Board of Directors is led by Ms. Luo Shaoying (Chairman and Executive Director), with Mr. Zhang Aiming and Ms. Yi Lin (Executive Directors), Mr. Hu Xiaolin (Non-Executive Director), and independent Non-Executive Directors Mr. Lu Youhua, Mr. Wang Susheng, and Mr. Song Deliang.

Important Advice for Shareholders

• Caution Advised: Since the profit alert is based on preliminary unaudited numbers, shareholders and potential investors are urged to exercise caution when dealing in the shares of Dowell Service Group Co. Limited.
• Material Development: This profit alert marks a material development in the company’s financial outlook, reversing a trend of losses and signaling a potentially improved operational environment and risk profile for the Group.

Conclusion

The announcement of a potential profit for FY2025 after a substantial loss in FY2024 represents a significant and price-sensitive development for Dowell Service Group Co. Limited. The financial improvement, driven primarily by the absence of major impairment provisions, could positively impact investor sentiment and the company’s share price. All stakeholders are advised to await the official audited annual results to be announced in late March 2026 before making any investment decisions.

Disclaimer: The information above is based on the company’s preliminary unaudited accounts and statements made by the Board. Actual audited results may differ. Investors should exercise caution and refer to the official annual results announcement for confirmed financial data before making any investment decisions.

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