STARJOY W&T (03662) has announced an expected annual profit for the group of approximately RMB 45 million to 50 million for 2025, compared to a profit of about RMB 86.3 million in 2024. Net profit attributable to owners of the company is projected to be between RMB 50 million and 55 million, down from approximately RMB 96.2 million in 2024.

The anticipated decrease in profit is primarily attributed to the following factors: (1) A significant year-on-year reduction of about RMB 27 million in exchange gains, mainly due to the depreciation of the US Dollar and Hong Kong Dollar against the Renminbi; (2) A substantial year-on-year decrease of approximately RMB 5 million in bank interest income, largely resulting from reductions in bank deposit interest rates; (3) Recognition of an impairment loss of about RMB 14 million on goodwill related to the acquisition of certain subsidiaries in previous years, as these subsidiaries experienced a contraction in operational scale following adjustments to the group's business strategy; (4) A year-on-year decline in revenue and profit from the group's invested medical aesthetics companies due to intensifying market competition, alongside a significant fair value decrease recognized for these equity instruments measured at fair value through profit or loss, with the reduction increasing by approximately RMB 5 million year-on-year; and (5) Increased investment in project resources and continuous optimization of property service quality to enhance customer satisfaction and address growing market competition.

On the other hand, after excluding relevant non-recurring and non-operating profit and loss items, the group is expected to achieve a core net profit of approximately RMB 97 million to 107 million for the 2025 fiscal year, which is largely consistent with the figure of about RMB 104.9 million for the 2024 fiscal year.