BAOYE GROUP (02355) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately 65 million to 75 million yuan, shifting from profit to loss compared to the same period last year.

BAOYE GROUP (02355) announced that (i) for the six months ending June 30, 2026, the company's attributable loss to owners is expected to be approximately RMB 65 million to 75 million, compared to a profit of approximately RMB 141 million for the same period in 2025, representing a decrease of about 146% to 153%; (ii) during the period, the Group is expected to achieve revenue of approximately RMB 7 billion to 8 billion, compared to approximately RMB 8.503 billion for the same period in 2025, reflecting a decrease of about 5% to 17%. The expected decline is primarily due to the industry's downturn, leading to a reduction in the Group's construction business. During the period, the gross profit margin of property development project deliveries is expected to decrease significantly compared to the same period last year. In addition, the company has recognized a certain amount of asset impairment losses.