Country Garden Services expects total revenue of 48.2-48.5 billion yuan and net profit of approximately 0.5-0.7 billion yuan by 2025.

Insight Network News: On February 27, Country Garden Services Holdings Limited issued an inside information announcement, disclosing asset impairment, profit warning, and dividend payout arrangements for 2025.

The announcement shows that, based on prudence, the group fully impaired the remaining goodwill balance of its non-wholly owned subsidiary, Country Garden ManGuo Environmental Technology Group Co., Ltd., amounting to approximately RMB 968.9 million. This impairment is a non-cash item and does not affect cash flow or daily operations, but will result in a reduction of net profit by the same amount in 2025.

The group expects that, unaudited, its comprehensive income for 2025 will be approximately RMB 48.2-48.5 billion, a year-on-year increase of 9.6% to 10.2%; unaudited net profit will be approximately RMB 450 million to 650 million, with net profit attributable to shareholders of about RMB 500 million to 700 million, both significantly down compared to the previous year. The decline is mainly due to the group’s proactive cleanup of long-aged trade receivables, which increased credit impairment losses on trade receivables; and the fair value changes of contingent consideration related to past acquisitions and mergers, which decreased compared to the same period in 2024.

Meanwhile, the group expects to record unaudited core net profit attributable to shareholders of approximately RMB 2.4-2.7 billion (compared to approximately RMB 3.0381 billion in the same period in 2024).

Regarding dividends, the board recommends a cash dividend for 2025 based on 60% of the core net profit attributable to shareholders, and expects the total dividend payout in 2026 to be no less than RMB 1.5 billion.

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