A-Living Services warns of significant net loss

A-Living Smart City Services Co. (HKEX: 3319) has issued a profit warning, anticipating a consolidated net loss attributable to shareholders in the range of RMB3.2 billion to RMB3.5 billion for the year ended December 31, 2024. This is a stark contrast to the RMB460 million net profit reported for the year ended December 31, 2023. The expected turnaround is primarily attributed to a RMB3.9 billion to RMB4 billion impairment provision for trade and other receivables from real estate-related parties, reflecting a thorough assessment of customer creditworthiness. Additionally, approximately RMB200 million to RMB300 million in impairment provisions will be made for goodwill. The company also cited reduced revenue and profits from extended value-added services due to a downturn in the real estate market. A-Living expects to publish its annual results in March 2025.