DESUN SERVICES (02270) issues a profit warning, expecting a mid-term loss attributable to shareholders of approximately 9.5 million to 14.2 million, a year-on-year shift from profit to loss.

DESUN SERVICES (02270) announced that the Group estimates it may record revenues of approximately RMB 243 million to RMB 258 million for the six months ending June 30, 2026, compared to revenues of approximately RMB 228 million for the six months ending June 30, 2025. The Group may also record a loss attributable to equity holders of the Company of approximately RMB 9.5 million to RMB 14.2 million during the reporting period, while the profit attributable to equity holders of the Company for the six months ending June 30, 2025, was approximately RMB 16.7 million. The expected losses during the reporting period are primarily due to the Group's active promotion of business transformation and upgrades, which have been negatively impacted by necessary resource investments and the phased increase in operating expenses, resulting in a negative impact of about RMB 12.9 million on the profit and loss attributable to equity holders during the reporting period. Meanwhile, the Group's equity investments in joint ventures for real estate development projects are still in the early stages and have not yet entered the concentrated delivery and revenue recognition period, leading to investment losses during this period. Additionally, due to the strategic development needs of the Company, share-based payment expenses recognized in this period pertain to share grants implemented during the reporting period and in previous years. These expenses are important investments made by the Group to build long-term talent competitiveness and to attract and deeply engage the core team. The Board believes that the fluctuations in profits mentioned above primarily stem from the Group's proactive and phased investments in strategic transformation and the construction of a core talent pipeline, representing a normal accounting reflection during a key period of business development. This does not change the fundamental logic of the Group's main business continuing to operate normally and the mid to long-term value enhancement. As the transformation business gradually takes shape, and as the Groups joint ventures enter a mature contribution phase and talent effectiveness continues to be released, the supporting role of related investments on performance will gradually become evident.