Royale Home (01198) has announced that the group is expected to record an annual loss ranging from RMB 580 million to RMB 730 million for the fiscal year ending December 31, 2025. This compares to an annual loss of approximately RMB 348 million for the year ended December 31, 2024. The increased loss for the current year is primarily attributable to a combination of factors: (i) a decline in operating profit from furniture products due to a challenging macroeconomic environment and weakened overall market demand; (ii) a significant decrease in the settled gross margin of the home renovation business, influenced by cyclical adjustments in the real estate sector; (iii) an increase in general provisions for trade receivables, other receivables, and inventory; (iv) revaluation losses on investment properties; (v) an increase in the share of losses from associates; and (vi) higher financing costs.