YUZHOU GP-NEW (01628) has announced its projection for the 2025 annual net profit, which is estimated to be in the range of approximately RMB 19.8 billion to RMB 21.8 billion. The shift from a loss to a profit for the year is primarily attributable to gains of about RMB 32.6 billion from the restructuring of offshore debt and approximately RMB 2 billion from the remeasurement of financial guarantee contracts. These gains are one-off, non-cash items derived from non-core operations and are not sustainable, offering no indicative value for the Group's operational performance. Excluding the impact of these one-time restructuring and revaluation gains, the Group would still have recorded a loss for the year. The projected annual loss, excluding these items, is between RMB 14.8 billion and RMB 12.8 billion, with the loss attributable to the company's owners estimated to be between RMB 11.2 billion and RMB 9.2 billion. This compares to an annual loss of approximately RMB 14.8 billion and an owner-attributable loss of about RMB 12.0 billion for the 2024 financial year. The Board of Directors believes that the expected annual loss for the reporting period, after excluding the effects of the restructuring and revaluation gains, is mainly due to the following factors: (1) A reduction in the gross profit from projects delivered during the period, caused by adverse macroeconomic conditions and a downturn in the real estate sector; (2) An increase in provisions for inventory and other asset impairments, as well as fair value losses on investment properties, recognized on a prudent basis due to impairment indicators observed in some of the company's property projects amid the challenging market environment; (3) A significant portion of financing costs that could not be capitalized. The decrease in the annual loss attributable to the company's owners for the reporting period, after adjusting for the restructuring and revaluation gains, is a result of an increase in the annual loss attributable to non-controlling interests.