JIACHEN HOLDING (01937) announced that compared to a net profit of approximately RMB 9 million for the six months ended June 30, 2024, the group expects to record a net loss of at least approximately RMB 1 million for the six months ending June 30, 2025.
The board of directors attributes the shift from profit to loss primarily to: (i) continued slowdown in economic activities in the commercial building construction industry, resulting in the group's sales revenue decreasing by at least 20% during the period, compared to sales revenue of approximately RMB 109 million for the six months ended June 30, 2024; (ii) gross profit margin for the period decreasing by at least three percentage points compared to the six months ended June 30, 2024; and (iii) impairment of contract assets, trade receivables and bills receivable increasing by at least RMB 2 million, compared to approximately RMB 789,000 for the six months ended June 30, 2024.
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