FIRST SERVICE (02107) has issued a profit warning, announcing that the group's net profit for the six months ending June 30, 2026, is expected to be no more than 28 million yuan. This compares to a net profit of approximately 39.6 million yuan in the same period of 2025.

Profit attributable to equity shareholders of the company for the period is expected to be no more than 21 million yuan, down from approximately 28.2 million yuan in the corresponding period last year. These declines are primarily attributed to the group's proactive optimization of its project portfolio and the orderly withdrawal from certain lower-margin projects, which caused a reduction in revenue. Meanwhile, operating costs did not decrease proportionally in the short term, resulting in a decline in gross profit.