Zhongsouth Corporation: It is expected that the annual net profit will be reduced by 1 to 1.2 billion yuan in 2025.

Announcement from Zhongnan Group: It is expected that the annual net profit for 2025 will be a loss of 1-1.2 billion yuan, with a loss of 1.204 billion yuan in the same period last year. In 2025, the domestic steel industry is in a period of deep adjustment characterized by "reducing production and optimizing existing capacity." The supply and demand imbalance has not substantially improved, showing a trend of strong supply, weak demand, high costs, and low prices overall, with the building materials market performing particularly weak. Some assets of the company show signs of impairment, and in accordance with the relevant provisions of Enterprise Accounting Standard No. 8 - Impairment of Assets, it is proposed to conduct impairment tests on the relevant assets and make provisions for impairment of assets.