Jiahua Stores (HKG:0602) expects to report a net loss of between 2 million yuan and 6 million yuan for the first half of 2025, sharply narrower than the 25.5 million yuan loss a year earlier, according to a Monday Hong Kong bourse filing.

The retailer attributed the improvement to higher gross profit from self-operated sales and reduced discounts, a 13.9 million yuan gain from early termination of a lease agreement, and continued cost-cutting.