MAOYE INT'L (00848) has announced an expected net loss for the group in the 2025 financial year, projected to be between RMB 2 billion and RMB 2.5 billion. This represents a significant increase compared to the net loss of approximately RMB 99.92 million recorded in the 2024 financial year. Excluding the impact of an impairment loss of approximately RMB 3 billion related to the fair value change of investment properties and impairment losses of around RMB 1 billion on assets such as goodwill and properties under construction, the operating net profit for 2025 would have been approximately RMB 1 billion.

The primary reason for the anticipated net loss for the 2025 financial year is the provision for impairment losses on investment properties, goodwill, and properties under construction. During 2025, due to market conditions, the fair value of investment properties decreased from approximately RMB 21.8 billion to about RMB 21.5 billion, a decline of roughly 1.4%. This is expected to result in a fair value change loss provision of approximately RMB 3 billion, affecting net profit by about RMB 2.3 billion. Concurrently, an impairment loss of approximately RMB 1 billion is expected to be recognized on assets including goodwill and properties under construction.

In accordance with relevant accounting policies and following communication with relevant institutions, the company's management, adhering to the principle of prudence, plans to make these provisions for the 2025 financial year.