Chinese players in action as a Japanese player defeats during their quarterfinal round of basketball game at the 2014 Incheon Asian Games, Incheon, South Korea, Sept 27, 2014. [Photo/IC]

INCHEON, South Korea - Chinese men's basketball team squandered a 15-point lead to lose to Japan 79-72 in quarterfinal round of 2014 Incheon Asian Games, their first defeat to Japan in Asiad history.

With 1:30 to go in the game, Japan built up a comfortable 71-64 lead to ensure the victory.

"We are not well prepared for this game, especially for difficulties," said Chinese head coach Gong Luming.

Zhou Peng and Dingyan Yuhang shared team-high 14 points. Zhao Tailong and Guo Ailun added 9 and 8 points respectively.

China led by 27-13 into the halftime, but their Japanese counterparts responded with a 14-2 run early in the third quarter.

"As a young squad, we should not look down upon any opponent. It's a lesson for us," added Gong.

China will face Iran, the toughest opponent in this round. Iran crushed over Mongolia 107-69 in an earlier match on Saturday.

In Group H, hosts South Korea edged past the Philippines 97-95, thanks to 38-year-old point guard Moon Tae-jong's game-high 38 points.

After winning two games in a row, South Korea secured a top four position, while the Philippines are on the verge of early exit.