RS MACALLINE (01528) has announced that the Group anticipates a loss of approximately RMB 15.985 billion to RMB 23.837 billion for the 2025 fiscal year ending December 31, 2025, representing a continuation of losses compared to the loss of approximately RMB 3.728 billion recorded for the year ended December 31, 2024.
The Group expects to report a net loss attributable to owners of the parent company in the range of RMB 15.36 billion to RMB 22.86 billion for 2025, which also signifies an ongoing loss compared to the net loss attributable to owners of approximately RMB 3.492 billion in 2024.
The anticipated loss for the 2025 fiscal year is primarily attributable to losses from fair value changes on investment properties and impairment losses on related assets.
Persistently impacted by the downturn in the real estate sector and declining demand in the home furnishing and building materials industry, demand in the home retail market has weakened; the company has continuously implemented measures such as rent reductions and management fee waivers to stabilize and retain merchants.
Simultaneously, the company is actively adjusting its strategy and product category layout, attracting high-quality formats and brands with favorable commercial terms, and offering rent and management fee concessions during the initial expansion phase, which has noticeably affected leasing and management income, leading to a significant decline in rental levels compared to previous years.
Due to a shift in market expectations for future rents, the estimated timeline for a short-term recovery in rental prices has been adjusted; consequently, the company has made corresponding adjustments to its revenue projections based on future rental expectations, resulting in a significant decrease in the value of its investment properties.
The valuation of investment properties for the 2025 fiscal year (including right-of-use assets measured at fair value) has been adjusted downward by approximately RMB 13.1 billion to RMB 22.0 billion accordingly.
Furthermore, as the underlying value of various assets historically formed by the company is also closely linked to factors such as the assessed value of investment properties and transaction prices in the real estate market, the company has conducted preliminary assessments of the recoverable amounts of various assets as of the end of 2025 based on the latest recoverable conditions.
This has led to the provision of corresponding impairment allowances ranging from RMB 4.5 billion to RMB 5.7 billion.
The aforementioned decrease in the fair value of investment properties and the provision of various impairment allowances are intended to accurately reflect the impact of various non-operating items on the company's financial information caused by changes in the current market environment.
The fair value changes of the related investment properties do not affect the cash flow generation capability of the company's held properties, do not impact the overall operational stabilization and recovery of the company, and do not alter the current improved status of the company's occupancy rate and net cash inflow from operating activities.
The company will proactively adapt to the national "16th Five-Year Plan" and the new market environment, upgrading its strategic positioning to become a "New Commercial Operator for Home Living and an Ecosystem Service Provider for the Home Industry," focusing on upgrading its core home furnishing business while expanding into home industry ecosystem services to build a second growth curve and achieve dual enhancement in scale and value.
Comments