BRETON (01333) has issued an announcement indicating that, based on information currently available to the board and a preliminary assessment of the group's unaudited consolidated management accounts for the six months ending 30 June 2026, the company expects to record a loss of approximately RMB 80 million to RMB 90 million for the period.

This projected loss represents a reduction of roughly 45.93% to 51.67% compared with the loss of approximately RMB 174 million reported for the same period in 2025. The anticipated narrowing of the loss for the period is primarily attributable to two key factors: an improvement in gross profit margin, and a decrease in impairment losses on receivables.

As of the date of this announcement, the group is still in the process of evaluating the impairment losses on accounts receivable, as well as any additional impairment provisions that may need to be recognized.