STARJOY W&T (03662) announced that the group expects to achieve profit attributable to owners of the company of no less than RMB 23 million for the six months ended June 30, 2025, compared to approximately RMB 81.6 million for the same period in 2024.

The board of directors believes the decline is primarily attributable to the following factors: (i) Since last year, in response to the impact of the continued downturn in the real estate market and economy, after multiple rounds of decision-making, the company decided to adjust its business strategy and proactively withdraw from projects with poor profitability and high risks. Based on prudent financial principles, adequate provisions were made for receivables related to these projects, resulting in reduced operating scale and profits; (ii) Certain subsidiaries acquired in previous years were affected by the aforementioned business strategy adjustments, with contracted operating scale requiring recognition of impairment losses on goodwill; (iii) To enhance owner satisfaction and address intensified market competition, the group increased resource allocation to properties under management and continuously optimized property service quality.

Additionally, the company expects that the group's performance, including profit reductions from business strategy adjustments, will stabilize within the next one to two years.