Hong Kong Yu Smart City Service (00265) issued a profit warning. It is expected that shareholders should account for profit of about HK$4 million to a loss of about HK$2 million in the medium term

According to the Zhitong Finance App, Hong Kong Yu Smart City Service (00265) issued an announcement. It is estimated that in the 6 months ending June 30, 2026, the Group will obtain a profit of about HK$4 million to a loss of about HK$2 million due to the equity holders of the Company, while profit of about HK$15.1 million will be obtained during the corresponding period in 2025.

The board of directors believes that the sharp decrease in expected profit is mainly due to the expiration of two major environmental health contracts during the current period, and a sharp drop in gross profit due to a downward adjustment of revenue from a property management project in the process of adjusting services to meet customer expectations.