Jujang Construction (01459.HK) issues a profit warning, expecting a net loss of approximately 12 million to 16 million yuan for the interim period, compared to a profit in the same period last year.

According to the news from Zhitong Finance APP, Jiujian Construction (01459.HK) announced that it expects to record a net loss ranging from approximately RMB 12 million to RMB 16 million for the six months ending June 30, 2026, compared to a net profit of approximately RMB 4.3 million for the same period last year. This change is primarily due to (i) an increase in financial and contract asset impairment losses of approximately RMB 28.3 million to RMB 21 million, which is about RMB 12 million higher than the same period last year, due to the continued weakness in the real estate market and slower-than-expected collection of long-term receivables; and (ii) an increase in income tax expenses. These factors were partially offset by an increase in other income and gains of approximately RMB 19.3 million to RMB 14.2 million, which is about RMB 11.2 million higher than the same period last year, mainly from the gain of approximately RMB 23.3 million realized from the sale of an 80% equity stake in a non-wholly-owned subsidiary.