Evergrande Property Services warns of profit decline

Evergrande Property Services Group Limited (HKEX: 6666) has issued a profit warning, anticipating a 28.4% to 37.3% decrease in net profit for the year ended December 31, 2024, falling between RMB980 million and RMB1,120 million, compared to RMB1,563.8 million in 2023. This decline is attributed primarily to legal expenses related to a RMB13.4 billion deposit pledge and late payment charges on corporate income tax. Despite the profit dip, the company forecasts revenue growth of 1.3% to 2.9%, reaching between RMB12,650 million and RMB12,850 million, driven by its multi-brand strategy and expansion in property management services. The company also noted its unaudited monetary funds are expected to increase by approximately RMB900 million from the end of 2023.