JST Group Corporation Limited (06687) has alerted investors that it expects to post a net loss attributable to equity holders of between RMB1.60 billion and RMB1.70 billion for the financial year ended 31 December 2025. This contrasts sharply with the RMB12.20 million net profit recorded in FY2024.

\n\nThe swing into loss is primarily driven by a non-cash charge of approximately RMB1.77 billion linked to fair-value changes in convertible redeemable preferred shares issued prior to the company’s 21 October 2025 Hong Kong listing. These preferred shares automatically converted into ordinary shares at listing, and the sharp rise in the company’s valuation triggered the sizeable revaluation loss, compared with a RMB18.50 million loss recognised in FY2024.

\n\nExcluding this fair-value impact and other designated non-IFRS adjustments—namely share-based payments, listing expenses, foreign-exchange movements, and fair-value changes in unlisted equity investments—the Group projects an adjusted net profit of RMB180.00 million to RMB230.00 million for FY2025.

\n\nManagement emphasised that the preferred-share revaluation loss is non-cash and does not materially affect the Group’s cash flows, noting that underlying operations “remain stable.” The audited annual results are scheduled for release in March 2026.

\n\nThe company urges shareholders and potential investors to exercise caution when dealing in its securities until the final results are announced.