WIN HANVERKY has announced that the group expects to record a net loss of approximately HK$180 million for the fiscal year ending December 31, 2025. This compares to a net loss of HK$62 million for the previous fiscal year ended December 31, 2024. The net loss for the current year includes a loss of about HK$20 million from continuing operations and a loss of approximately HK$160 million from discontinued operations. The estimated net loss for the current year is primarily attributed to the following factors. First, the persistent market downturn in Hong Kong and Mainland China, coupled with weak consumer demand, has presented significant challenges to the high-end fashion retail segment, leading to substantial operating losses. Following a comprehensive strategic review, the board has decided to terminate the high-end fashion retail business and reallocate resources to develop a new segment named "Fashion Brand and Licensing Business." This new segment represents a capital-light business model within the fashion operations, offering stronger growth prospects and enhanced profitability. The operating loss from the discontinued high-end fashion retail business amounted to approximately HK$156 million, mainly due to a goodwill impairment of about HK$80 million and impairments on inventory and property, plant, and equipment from discontinued store operations of around HK$55 million. All these are non-cash items. These losses were partially offset by an operating profit of approximately HK$66 million from the new "Fashion Brand and Licensing Business" segment. Second, the sportswear manufacturing business recorded an operating loss of about HK$26 million, primarily resulting from raw material issues encountered at the group's Southeast Asian production facilities while handling certain major orders in the first half of the year, which led to higher-than-expected production and transportation costs. Third, the high-performance outdoor apparel manufacturing business reported an operating loss of approximately HK$8 million. This was mainly due to a strategic shift to reduce reliance on outsourced garment manufacturers while gradually increasing internal production capacity. This transition aims to achieve better control over product quality and improve long-term operational efficiency, although it has temporarily led to a decrease in revenue.