Xinji Shaxi (03603) issued a profit warning, expecting that the net loss attributable to shareholders for the year 2025 will be approximately 22 million to 32 million yuan, representing a narrowing compared to the previous year.

XINJI SHAXI (03603) announces that compared to the net loss attributable to shareholders of approximately RMB 162 million for the fiscal year ending on December 31, 2024 (2024 fiscal year), it is expected that the net loss attributable to shareholders of this group for the fiscal year ending on December 31, 2025 (2025 fiscal year) will be no less than RMB 22 million but no more than RMB 32 million. The Board of Directors believes that the expected decrease in the net loss attributable to shareholders for the 2025 fiscal year is mainly due to the decrease in fair value loss of investment properties held by this group, as (i) the renovation plan of "XINJI SHAXI Hotel Supplies Expo City" has been delayed, leading to improvement in its operating conditions, and (ii) the decrease in rental rates of two malls in Shenyang is expected to narrow compared to the previous year, resulting in a reduction in the estimated valuation loss for the 2025 fiscal year compared to the 2024 fiscal year. Despite the above circumstances, excluding the impact of certain one-off or non-recurring items, including changes in fair value of investment properties and related income tax expenses on these adjustment items (which the Board of Directors does not consider as indicators used to evaluate the actual performance of this group), the core net profit of this group for the 2025 fiscal year is expected to decrease by no more than RMB 200 million compared to the core net profit for the 2024 fiscal year, which was approximately RMB 73.8 million.