Zhengrong Real Estate: Preliminary assessment shows a net loss of RMB 1.7-1.8 billion for the year 2025.

Zhengrong Real Estate announced a profit warning, with a preliminary assessment of a net loss of 1.7 to 1.8 billion RMB in 2025. The main reasons for the net loss are the overall decline in demand in the domestic real estate industry, resulting in a decrease in project selling prices and gross margins, impairment provisions for properties under development, completed properties held for sale, and other assets, as well as financial assets. Non-capitalized financing expenses have increased, and fair value of investment properties has decreased.