MAOYE INT'L (00848) issues a profit warning, expecting a net loss of approximately 200 to 250 million yuan for the fiscal year 2025, with an increase compared to the previous year.

MAOYE INT'L (00848) announced that the group is expected to incur a net loss of approximately RMB 200 million to RMB 250 million in the year 2025 (2014: a net loss of approximately RMB 99.92 million), excluding impairment losses of approximately RMB 300 million on investment properties fair value changes and approximately RMB 100 million on impairment losses of goodwill and assets under construction, etc. The operating net profit for 2025 is expected to be approximately RMB 100 million. The main reason for the expected net loss in 2025 is the recognition of impairment losses on investment properties and goodwill and assets under construction. In 2025, due to market changes, the fair value of investment properties is expected to decrease from around RMB 21.8 billion to approximately RMB 21.5 billion, a decrease of approximately 1.4%. It is estimated that an impairment loss of approximately RMB 300 million will be recognized, impacting net profit by approximately RMB 230 million. Additionally, it is anticipated that impairment losses of approximately RMB 100 million will be recognized on goodwill, assets under construction, etc. Based on relevant accounting policies and communication with relevant institutions, and in accordance with the principle of prudence, the company plans to recognize impairment losses of approximately RMB 300 million for fair value changes on investment properties and approximately RMB 100 million on impairment losses of goodwill and assets under construction in 2025.