China New City Group Limited Issues Supplemental Profit Warning

Key Points of the Report

• Profit Warning Supplement: China New City Group Limited has issued a supplemental announcement regarding its profit warning for the financial year ended 31 December 2025 (FY2025).
• Expected Net Loss: The Group expects to record a net loss attributable to owners of the parent of not more than approximately RMB277 million for FY2025.
• Contrast to Previous Year: This represents a significant reversal from FY2024, when the Group recorded a net profit attributable to owners of the parent of approximately RMB504 million.
• Main Reasons for Loss: The primary causes of the expected loss have been disclosed in the earlier announcement dated 20 March 2026.
• Board Review: The figures are based on further review of the unaudited consolidated management accounts and currently available information.

Important Information for Shareholders and Investors

• Price-Sensitive Information: The anticipated net loss of RMB277 million, compared to a net profit of RMB504 million in the prior year, is a material deterioration in financial performance and may significantly impact the share price.
• Investment Caution: The Board advises shareholders and potential investors to exercise caution when dealing in the shares of the Company. This guidance is explicitly stated due to the substantial change in the Group’s earnings outlook.
• Corporate Governance: As of the announcement date, the Board consists of Mr Shi Nanlu, Mr Jin Jianrong, and Ms Chen Jing (executive Directors); Mr Shi Zhongan (non-executive Director); and Mr Xu Chengfa, Mr Lam Yau Yiu, and Mr Yuan Yuan (independent non-executive Directors).
• Announcement Date: The supplemental announcement was issued on 23 March 2026.
• Clarification: All other information and content from the previous announcement remain unchanged. This supplemental announcement is intended to be read together with the earlier profit warning.

Detailed Analysis and Potential Share Price Impact

The Group’s expected swing from a sizeable profit (RMB504 million) to a substantial net loss (up to RMB277 million) within one year reflects a major shift in business performance. This is highly price-sensitive information and may lead to increased volatility in the Company’s share price. Investors should closely monitor subsequent disclosures regarding the causes of this loss and any measures the Group may take to address the downturn.

The announcement underscores the importance of reviewing both the supplemental and original profit warning statements. The Board’s cautionary advice further signals the seriousness of the financial situation, and shareholders should consider the risks before making any trading decisions.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult their financial advisors prior to making any investment decisions. The information contained herein is based on public disclosures by China New City Group Limited, and while every effort has been made to ensure accuracy, no liability is accepted for any loss arising from reliance on this article.

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