Qinqin Foods (01583) has announced that the group expects to record an annual net loss attributable to shareholders of approximately RMB 1 million to RMB 3 million for the fiscal year ending December 31, 2025. This compares to a net profit attributable to shareholders of approximately RMB 21 million reported for the 2024 fiscal year. The shift from profit to loss during the reporting period is attributed to the combined net effect of several key factors. Firstly, the group may experience a decline in revenue, primarily due to reduced sales through traditional distribution channels. This decrease was partially offset by sales growth to snack food chains, OEM manufacturing business, and export operations. The overall drop in sales volume also led to diminished economies of scale, resulting in a lower gross profit. The gross profit for the reporting period is estimated to have decreased by approximately RMB 32 million compared to 2024. Secondly, the group may recognize a net gain of approximately RMB 5 million from the disposal of properties, machinery, and equipment during the reporting period, compared to a net loss of RMB 6 million in 2024. This one-time disposal gain primarily resulted from the completion of the sale of the land use rights and related production facilities and properties at the group's former production base in Xiantao City, Hubei Province, China. Thirdly, the group may record a one-time impairment loss of approximately RMB 7 million on construction in progress during the reporting period. This impairment was due to the group's decision to discontinue a construction and development project located in Xiaogan City, Hubei Province, China.