SHANGHAI PECHEM (00338) has announced that the Group expects to record a net loss attributable to equity shareholders of the company of approximately RMB 1.289 billion to RMB 1.576 billion for the year ending December 31, 2025, representing a shift to a loss compared to the same period in 2024. The Group also anticipates a net loss attributable to equity shareholders, after excluding non-recurring gains and losses, in the range of approximately RMB 1.280 billion to RMB 1.564 billion, also a turn to a loss compared to the prior year period. The primary reasons for the projected loss in the Group's 2025 performance are as follows: international crude oil prices generally trended lower with volatility throughout 2025, product market demand showed no significant improvement, the profit margins on the Group's main refining and chemical products narrowed, and these factors were compounded by the impact of a major overhaul of production facilities in the fourth quarter, which led to a decline in total merchandise output; the combination of these reasons resulted in an operating loss for the Group.