Zhenro Properties (06158) has announced an expected net loss attributable to owners of the parent company for the fiscal year ending December 31, 2025, in the range of approximately RMB 17 billion to RMB 18 billion. This compares to a net loss attributable to owners of the parent of approximately RMB 6.83 billion for the fiscal year ended December 31, 2024. The company also anticipates a core loss, which excludes the impact of non-cash items such as impairment losses, fair value changes, and exchange gains or losses, to be between approximately RMB 5 billion and RMB 6 billion for 2025, compared to a core loss of approximately RMB 3.178 billion in 2024.

The significant increase in the net loss attributable to shareholders is primarily attributed to several factors expected in 2025. These include a decline in project selling prices and gross profit margins due to an overall downturn in demand within the People's Republic of China's real estate sector. This has led to impairment provisions related to properties under development, completed properties held for sale, other assets, and financial assets. Additionally, the company cites an increase in uncapitalized financing costs and a decrease in the fair value of its investment properties. The anticipated wider loss for 2025 is mainly due to a reduction in gross profit and an increase in impairment loss provisions compared to the 2024 fiscal year.