Country Garden Services Flags Goodwill Impairment and Profit Drop Despite Revenue Growth

Country Garden Services Holdings Co ( (HK:6098) ) has shared an announcement.

Country Garden Services Holdings has recognised a full impairment of about RMB968.9 million on the goodwill of its subsidiary Manguo, after prolonged customer payment cycles and weak operating cash flow prompted a strategic scaling back of related businesses. The non-cash charge will cut 2025 net profit by the same amount but will not affect core net profit or directly impact cash flow.

For 2025, the Group expects revenue to rise roughly 9.6%–10.2% to up to RMB48.5 billion, reflecting robust growth in property management, community value-added services and its “Three Supplies and Property Management” business. However, net profit and core net profit attributable to shareholders are projected to fall sharply due to higher credit impairment losses from clearing long-outstanding receivables and lower gains from changes in fair value linked to earlier M&A performance guarantees, signalling mounting earnings pressure despite top-line growth.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

More about Country Garden Services Holdings Co

Country Garden Services Holdings is a Hong Kong–listed property management and community services provider, operating across mainland China. The Group focuses on property management services, community value-added services, and the “Three Supplies and Property Management” segment, with growth driven by market expansion and refined operational management.

Average Trading Volume: 7,900,491

Technical Sentiment Signal: Buy

Current Market Cap: HK$21.37B

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