• Revenue contraction due to cessation of international trading and suspension of Neurio-branded product sales in China
• Impairment of Sunnya goodwill and trade names due to low sales expectations for Neurio products
• Inventory write-downs related to excess stock from suspended Neurio operations

Jatcorp Ltd (ASX: JAT) has provided a preliminary unaudited loss guidance for the financial year ended 30 June 2025 (FY2025). The company expects to report a net loss after tax in the range of $7.6 million to $8 million, representing a further $1.5 million to $1.9 million of net loss in the second half of FY2025 compared to the $6.1 million (unaudited) net loss reported for the first half. This material decline in financial performance is primarily attributable to the following factors: 1) Revenue Contraction - Total revenue for FY2025 declined by approximately $39 million, primarily due to the cessation of the company's international trading operations and the unexpected suspension of sales of Neurio-branded products in China, following an unfavourable interim ruling in the ongoing Neurio Dispute. This resulted in reduced gross profit and a loss of operating leverage. 2) Impairment of Sunnya Goodwill - The legal proceedings in China have led to the suspension of all sales for Neurio products in mainland China, resulting in very low sales expectations. Consequently, the goodwill of $2,347,482 and trade names valued at $225,633 have been impaired this period. 3) Inventory Write-Downs - The company recognized a non-cash inventory impairment of approximately $1.4 million, largely relating to excess stock associated with the suspended Neurio operations in China. The FY2025 financial results remain unaudited and are subject to finalisation and review by the company's external auditors.

The company remains cautiously optimistic about the financial outlook for FY2026, with management expecting improved performance supported by a sharpened focus on brand development, distribution expansion, and margin recovery. The Moroka® brand continues to gain traction, and the company's principal distributor, H&S International (HK) Co. Ltd., has reaffirmed its commitment to achieving the contracted sales target of $11 million for FY2026, representing a 22% increase of FY2025 sales achieved by H&S.