Zhongyuan Construction (09982) issued a profit warning. The net loss for the medium term is expected to be about 20 million yuan to 35 million yuan, a year-on-year profit and loss

According to Zhitong Finance App, Zhongyuan Construction (09982) announced that the Group expects a net loss of about RMB 20 million to RMB 35 million for the six months ending June 30, 2026, while net profit after tax will be approximately RMB 37 million for the same period in 2025.

The expected change in profit to loss is mainly due to the following factors: the continued downturn in the real estate market, leading to a sharp decrease in the Group's management service fee revenue; and continued impairment losses on accounts receivable, mainly due to increased credit risk and slow repayment of certain accounts receivable in a continuously challenging business environment. Based on the precautionary principle, the Group re-assessed the credit risk of relevant financial assets according to the expected credit loss model and continued to carefully consider impairment provisions during the period, which adversely affected the Group's profit performance.