Jiahua Stores Holdings (00602.HK) announced that it expects the group's net loss to decrease from approximately RMB 34 million (unaudited) for the six months ending on June 30, 2023, to approximately RMB 23 million to RMB 27 million for the six months ending on June 30, 2024.

According to the announcement, the expected decrease in the group's net loss is mainly due to the impact of the opening of Jiayanghui Shopping Center in Shajing, Shenzhen in July 2023. However, other factors, including but not limited to i) continued competition from online e-commerce, ii) fierce competition in offline retail, iii) factory closures and rising unemployment leading to a general decline in community consumer habits, and iv) foreign divestment and factory closures resulting in a decrease in the permanent population, still have a negative impact on the group's business.