JAPAN KYOSEI (00627) announced that the group expects to incur a net loss of approximately RMB 11 million to RMB 13 million for the six-month period ending June 30, 2025 (the reporting period), compared to a net loss of approximately RMB 312 million for the same period in 2024.

Based on the latest available information, the expected net loss for the reporting period is mainly attributable to the following factors: the group expects to achieve a gross profit of no less than approximately RMB 0.8 million, compared to a gross loss of approximately RMB 63.8 million in the same period last year; no impairment loss provision is expected for the reporting period, compared to approximately RMB 51.9 million provided in the same period last year; the group's administrative expenses are expected to be approximately RMB 7.2 million, compared to approximately RMB 18.3 million in the same period last year; and the group's finance costs are expected to be approximately RMB 9.4 million, compared to finance costs of approximately RMB 185 million in the same period last year.