BRETON (01333) expects to incur a loss of approximately 80 million to 90 million yuan in the medium term, narrowing by about 45.93% to 51.67% compared to the same period last year.

BRETON (01333) announced that based on currently available information from the Board of Directors and a preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ending June 30, 2026 (the "Period"), it is expected that the Group will incur a loss of approximately RMB 80 million to RMB 90 million during this Period, a decrease of approximately 45.93% to 51.67% compared to a loss of approximately RMB 174 million for the same period in 2025. The expected decrease in loss during this Period is mainly due to: (1) an improvement in gross profit margin; and (2) a reduction in impairment of receivables. As of the date of this announcement, the Group is still assessing the impairment loss of receivables and any potential impairment of receivables that may need to be recognized.