"Profit Warning" ZG GROUP-W latest expects mid-term loss between 480 million to 520 million RMB

ZG GROUP (06676.HK) issued an earnings forecast update announcement, stating that based on the latest assessment of unaudited financial information, it expects to record a net loss of approximately RMB 480 million to 520 million for the six months ending June 30 this year, compared to a net loss of approximately RMB 76 million for the same period last year, and not the previously announced expected net profit of approximately RMB 140 million to 180 million.

The group explained that the update was mainly due to a further review of the calculation of the fair value changes of convertible preferred shares. The latest assessment estimates that for the six months ending June 30, 2025, the non-cash gain from the fair value changes of preferred shares and financial liabilities measured at fair value with changes recognized in profit or loss is approximately RMB 110 million, rather than the aforementioned RMB 769 million