Red Star Macalline Group Corporation (01528) issues a profit warning, expecting a net loss in performance in 2025.

Red Star Macalline Group Corporation (01528) announced that, according to preliminary calculations by the company's finance department, it is expected that the net profit attributable to the owners of the parent company for the year 2025 will be negative. This is mainly due to the continued downturn in the real estate market leading to a weakening of demand in the home furnishing retail market. Over the past two years, the company's leasing and management income has remained at low levels, with rental prices showing a significant decline compared to previous years. Market sentiment and rental expectations have shifted, leading the company to adjust its expectations for future rental income, resulting in a significant decrease in the value of investment properties. At the same time, based on the latest recoverable conditions of all assets, the company has made preliminary calculations of the recoverable amounts of various assets as of the end of 2025, and has made corresponding impairment provisions. Due to the above reasons, based on preliminary calculations, the company expects a loss in the net profit attributable to the owners for the year 2025 in the consolidated financial statements.