Hong Kong-listed Yuzhou Group Holdings Company Limited (Stock Code: 01628, “Yuzhou Group”) expects to report a consolidated net profit of approximately RMB19.80 billion to RMB21.80 billion for the year ended 31 December 2025, reversing the RMB14.80 billion loss recorded in 2024.

The turnaround is driven chiefly by one-off, non-cash items: • Offshore debt restructuring gains: about RMB32.60 billion • Remeasurement of financial guarantee contracts: around RMB2.00 billion

Excluding these exceptional gains, management forecasts: • Net loss: RMB12.80 billion to RMB14.80 billion • Net loss attributable to owners: RMB9.20 billion to RMB11.20 billion, a narrowing from the RMB12.00 billion loss in 2024, mainly due to a larger share of losses borne by non-controlling interests.

Key factors weighing on underlying performance: 1) Industry downturn and soft macroeconomic conditions, leading to lower gross profit on delivered projects. 2) Impairment provisions and fair value losses on certain real estate projects and investment properties. 3) Higher finance costs with reduced capitalization eligibility.

The figures are based on unaudited management accounts prepared on a going-concern basis and may differ from the final audited results, which are slated for release by end-March 2026. The board advises shareholders and potential investors to exercise caution when dealing in Yuzhou Group shares.