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Jialitu: Expected net loss of $63 million to $75 million in the first half of 2026

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Jialitu Announcement: The company expects to realize a net loss attributable to the owners of the parent company of 63 million to 75 million yuan in the first half of 2026, compared with a net loss of 17.7716 million yuan in the same period last year. The main reasons for the company’s expected pre-loss performance in this period are as follows: industry competition is fierce; upstream supporting procurement costs have risen; the gross margin of integrated business has fallen sharply; and profitability for precision air-conditioning and maintenance delegation services has weakened in tandem, resulting in a significant contraction in the gross margin of the company’s core business overall. The project cycle has been extended, causing goods to be held back due to backlog and delayed delivery; this is compounded by losses on certain project orders; together with slower customer receivables collection, the company has made large provisions for inventory impairment and credit impairment. The company’s subsidiary, Kaide Youyun Data Center, has transferred assets from construction in progress to operational use, leading to a year-on-year increase in depreciation, electricity costs, and operation and maintenance costs.
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