According to Zhitong Finance App News, Jiahua Department Store Holdings (00602) issued an announcement. Based on a preliminary review of the Group's unaudited management accounts for the six months ended June 30, 2026 and the assessment of the latest information currently available to the board of directors, the Group's net loss is expected to increase from approximately RMB 3.6 million (unaudited) for the six months ending June 30, 2025 to approximately RMB 42 million for the six months ending June 30, 2026.

The projected increase in the Group's net loss is mainly due to: i) the decline in gross profit due to increased sales after all stores were renovated; ii) the reduction in rental income from sub-leased stores and shopping centers due to increased competition and stagnant local economic conditions; and iii) there were no early lease termination benefits from last year in the current period.

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