Jiahua Stores H (00602) issued a profit warning, expecting an annual loss of approximately 68 to 72 million yuan.

JIAHUA STORES H (00602) announced that it is expected to incur a loss for the year ending December 31, 2025, ranging between RMB 68 million and RMB 72 million. This is an increase from the loss of approximately RMB 55.7 million for the year ending December 31, 2024. The expected increase in the loss for the year ending December 31, 2025 is mainly due to: (1) a decrease in the fair value of investment properties; (2) an increase in net impairment losses of right-of-use assets, properties, factories, and equipment; and (3) an increase in sales expenses to promote direct sales. However, this increase is partially offset by an increase in early termination lease income and a decrease in financing costs.