Zhenro PPT (06158) issued a profit warning, expecting the mid-term loss attributable to shareholders to widen to between 8.2 billion and 8.4 billion yuan compared to the same period last year.

ZHENRO PPT (06158) announced that based on a preliminary assessment of the Group's unaudited management accounts for the six months ending June 30, 2026 (the "Period") and other currently available information, it is expected that the Group will report a loss attributable to equity holders of the parent company ranging from RMB 8.2 billion to RMB 8.4 billion (for the six months ending June 30, 2025 (the "Comparative Period"), the loss attributable to equity holders of the parent company was approximately RMB 6.463 billion). The expected increase in the loss attributable to equity holders of the parent company for the Period is primarily due to: (1) the number of delivered projects significantly decreased from approximately 2,000 in the Comparative Period to about 600 in the Period, resulting in a decline in gross profit of approximately RMB 93.5 million compared to the same period last year; (2) a decrease in interest capitalization rate, leading to an increase in financing costs of approximately 24% or about RMB 469 million compared to the same period last year; (3) an impairment loss recognized during the Period for properties under development and completed properties held for sale of approximately RMB 2.69 billion (Comparative Period: approximately RMB 1.972 billion); and (4) an impairment loss recognized during the Period for financial assets netting approximately RMB 2.27 billion (Comparative Period: approximately RMB 1.345 billion).