FIRST SERVICE (02107) issues a profit warning, expecting a net profit of no more than 28 million yuan for the interim period.

FIRST SERVICE (02107) issued an announcement indicating that the net profit of the Group for the six-month period ending June 30, 2026 (the "Period") is expected to be no more than RMB 28 million, while the net profit for the same period in 2025 was approximately RMB 39.6 million. The profit attributable to equity shareholders of the Company during this Period is expected to be no more than RMB 21 million, whereas the profit attributable to equity shareholders of the Company for the same period in 2025 was about RMB 28.2 million. The decrease is mainly due to the Group's proactive optimization of its project portfolio and the orderly exit from several projects with lower gross margins, resulting in reduced revenue, while operating costs have not decreased proportionally in the short term, leading to a decline in gross profit.