Hongyang Service (01971) Fa Ying Jing expects the net profit attributable to shareholders in the medium term not to exceed 8 million yuan

Zhitong Finance App News, Hongyang Service (01971) announced that the Group expects the net profit recorded in the six months ending June 30, 2026 to not exceed RMB 5 million (same period in 2025: net profit of approximately RMB 28 million), and the net profit attributable to equity holders of the company will not exceed RMB 8 million (same period in 2025: net profit attributable to the company's equity holders is approximately RMB 24 million).

The decline in the Group's expected profit during the period is mainly due to the continuing impact of the real estate industry market environment. The Group's related real estate developer customers increased their preparations for impairment of accounts receivable from related parties due to liquidity difficulties, and the bad debt rate rose from 52.6% for the year ending December 31, 2025 to 56.1% in the current period. At the same time, the Group withdrew from the property management business of some projects, further boosting the overall accounts receivable rate, which rose from 17.6% for the year ended December 31, 2025 to 21.6% in the current period. Together, the above factors have led to a significant increase in impairment preparations for accounts receivable in the current period, which adversely affected the Group's profits.