UCD issued a profit warning, expecting a year-on-year decline of approximately 31% to 41% in mid-term net profit
UCD issued a profit warning, expecting a year-on-year decline of approximately 31% to 41% in net profit for the first half of 2025, with revenue expected to decrease by about 9% to 19%. The main reasons include the impact of the macro economy, a reduced conversion rate of new rail construction projects, a decline in the scale of design business due to policy adjustments, and a decrease in construction revenue as the Chongqing Yuxi Express Line construction project enters the operational phase
According to the announcement from UCD (01599), the group expects to achieve revenue in the range of approximately RMB 3.385 billion to 3.803 billion in the first half of 2025, a decrease of about 9% to 19% compared to the revenue of approximately RMB 4.179 billion in the first half of 2024; and the group expects to achieve a net profit in the range of approximately RMB 219 million to 256 million in the first half of 2025, a decrease of about 31% to 41% compared to the net profit of approximately RMB 371 million in the first half of 2024.
The board believes that the main reasons for the aforementioned decline in revenue and net profit include (i) the impact of the macroeconomic situation, which has led to a decrease in the conversion rate of newly opened rail construction projects; (ii) adjustments in policies in the urban rail transit industry in recent years, resulting in a corresponding adjustment in the number of urban rail transit lines approved by the government, leading to a decrease in the scale of the group's design business; (iii) the group's Chongqing Yuxi Express Line construction project has entered the operational phase, resulting in a corresponding decrease in construction revenue, among others
