Kaisun Holdings (08203) announced that the group expects to record a net loss attributable to owners of approximately HK$24 million for the six months ended June 30, 2025, compared to a net loss attributable to owners of approximately HK$0.8 million for the same period in 2024. This represents a significant increase in net loss during the period.

In the first half of 2025, the group successfully reduced administrative costs by optimizing management processes and strengthening cost controls. However, gross profit declined due to weak demand in the domestic coal market and coal-consuming enterprises primarily depleting existing inventory during the first half of the year, leading to reduced new procurement demand.

Regarding domestic coal demand, coal-consuming enterprises faced pressure from high inventory levels in the first half of the year, which suppressed new procurement demand and resulted in overall weak market performance. However, with the arrival of traditional peak coal consumption seasons in the second half of the year, including summer peak demand, the "Golden September and Silver October" period, and winter peak demand, domestic coal consumption is expected to gradually recover.

Meanwhile, following continuous inventory reduction in the first half of the year, terminal enterprise inventory levels are expected to decline significantly, and new procurement demand may be gradually released, further driving the recovery of the coal market.