YUZHOU GROUP (01628) expects its mid-term losses to narrow year-on-year.

YUZHOU GROUP (01628) announced that it expects the Group to incur a reported loss of approximately RMB 5.3 billion to 6.3 billion for the six months ending June 30, 2026, with a loss attributable to the owners of the Company expected to be around RMB 3.9 billion to 4.9 billion. In the same period of 2025, the reported loss was approximately RMB 7.4 billion, and the loss attributable to the owners of the Company was about RMB 5.6 billion. The decrease in reported loss and the loss attributable to the owners of the Company is mainly due to a reduction in impairments related to held-for-sale properties and construction properties, as well as a decrease in financing costs compared to the same period in 2025, along with one-time gains resulting from the cancellation of preferred notes due to failure to complete the application on time. The Board believes that the estimated loss for the reporting period is primarily impacted by the unfavorable macro environment and a downturn in the real estate industry. Following prudent principles, the Group has recognized impairments on held-for-sale properties and construction properties, confirmed impairments on property, plant, and equipment, recognized impairments on investments in certain joint ventures and associates related to real estate projects held by the Company, recognized impairments on other receivables, and confirmed fair value losses on investment properties; a significant amount of financing costs could not be capitalized.