CHINA NEWCITY (01321) announced that the group expects to record a net loss of no more than approximately RMB 40 million during the 2025 period, compared to a net profit of approximately RMB 347.5 million for the six months ended June 30, 2024.
The expected shift from profit to loss in the 2025 period is primarily attributed to the completion of most revenue recognition for the group's International Office Center IOC A2.1 building project in 2024. As of December 31, 2024, approximately 76% of the project's contract sales had been recognized, while it is estimated that approximately RMB 300 million in project sales revenue will be recognized by June 30, 2025. This has resulted in an anticipated significant decline in revenue for the group's commercial property development business segment compared to the 2024 period, with the decrease expected to be no more than approximately 94%.
Nevertheless, the group anticipates that revenue from its property leasing business segment will increase by no less than approximately 30% compared to the 2024 period, continuing to provide stable cash inflows for the group.
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