JIAHUA STORES H(00602) issues a profit warning, expecting a mid-term net loss to increase year-on-year to approximately 38 million to 42 million yuan.

JIAHUA STORES H (00602) released an announcement stating that based on the preliminary review of the Group's unaudited management accounts for the six months ending June 30, 2026, and the assessment of the latest information available to the Board of Directors, it is expected that the Group's net loss will increase from approximately RMB 3.6 million (unaudited) for the six months ending June 30, 2025, to between approximately RMB 38 million and RMB 42 million for the six months ending June 30, 2026. The expected increase in the Group's net loss is mainly attributed to: i) a decline in gross profit due to increased sales efforts following the renovation of all stores; ii) a decrease in rental income from sublet shops and shopping malls due to intensified competition and stagnant local economic conditions; and iii) no gains from early lease terminations that were realized last year.