ZHENGTONGAUTO (01728) announced that due to the intensifying price war in the automotive market and macroeconomic factors, the group has made impairment provisions for goodwill and/or intangible assets including automobile dealership rights/dealer operating rights for certain underperforming 4S stores, as well as fixed assets such as properties and renovations of 4S stores planned for transformation. Consequently, the group expects its net loss for the six months ended June 30, 2025, to increase by approximately 40% compared to the same period last year. The increase in net loss is primarily attributable to declining new vehicle selling prices, impairment of goodwill and intangible assets, and impairment of fixed assets. Based on the long-term strategic support from the group's controlling shareholder Xiamen ITG Holding Group Co., Ltd., and according to the assessment of the group's unaudited consolidated management accounts for the six months ended June 30, 2025, the board of directors believes that the group can adapt to industry changes and continue to maintain its operational development.