Midea Real Estate warns of core net loss

Midea Real Estate Holding Limited (HKEX: 3990) has issued a profit warning, anticipating a core net loss attributable to owners of the company ranging from RMB1.95 billion to RMB2.05 billion for the year ended December 31, 2024. This contrasts sharply with the RMB1.03 billion core net profit recorded in 2023. The downturn is primarily attributed to an expected RMB2.4 billion to RMB2.6 billion loss related to property impairment, partially stemming from the distribution in specie. Following the distribution's completion in October 2024, the company's retained businesses, which include property management and real estate technology, are projected to generate a core net profit of RMB450 million to RMB550 million. The company plans to release its full annual results around March 28, 2025.