New Silkroad (00472.HK) announced that as of June 30, 2024, the preliminary review of unaudited comprehensive management accounts for the six months ended June 30, 2023 showed a loss of approximately 18.593 million Hong Kong dollars, compared to the same period ended June 30, 2023. The current group's consolidated loss will increase to approximately 60 million to 70 million Hong Kong dollars. The main reason for the expected loss is the disposal loss of the 72% share interest in Megaluck Company Limited sold by the group on June 11, 2024. Selling the entertainment business is a major loss reduction initiative for the group, in order to reduce losses and better allocate group resources to other profitable businesses.
In addition to the entertainment business, the group's wine business also recorded losses in the previous relevant period and during the period. As the global economy is expected to continue to be slow and stagnant, severely affecting consumer sentiment, the board of directors is not optimistic about the prospects of the wine business turning around in the near future. The board will continue to look for opportunities to divest from loss-making businesses and reallocate group resources to higher-profit businesses, in line with the overall interests of shareholders and the company.
