Yuzhou Group (01628) expects medium-term losses to narrow year-on-year

According to Zhitong Finance App News, Yuzhou Group (01628) issued an announcement. It is expected that in the six months ending June 30, 2026, the Group will have a reporting period loss of about RMB 5.3 billion (same per unit) to RMB 6.3 billion and a loss of about 3.9 billion yuan to 4.9 billion yuan for the reporting period due to the Company's owners, while the same period in 2025 will have a loss of about 7.4 billion yuan during the reporting period and a loss of about 5.6 billion yuan for the reporting period. Losses during the reporting period and losses attributable to the Company's owners during the reporting period were mainly due to the reduction in deductions and financing costs for properties held for sale and the reduction in financing costs compared to the same period in 2025, as well as one-time income from cancellation of senior notes due to failure to complete claims on schedule.

The board of directors believes that the estimated losses during the reporting period were mainly due to the adverse macroeconomic environment and the downturn in the real estate industry. According to prudential principles, property for sale and construction businesses were deducted, impairment was confirmed for property, plant and equipment, confirmed impairment of investments in joint ventures and associated companies holding part of the company's real estate projects and confirmed impairment on other accounts receivable, and confirmed fair value losses on investment properties; large financing costs could not be capitalized.