HK Chinese Ltd (00655) has released an announcement, expecting the group to obtain a loss of not less than HKD 0.4 billion from its share of an associate for the six months ending on June 30, 2024 (the "current period"), while earning approximately HKD 90.6 million from its share of surplus for the six months ending on June 30, 2023. The main reason for the loss is due to a subsidiary of a major associate of the company, OUE Limited ("OUE"), which is listed on the Main Board of the Singapore Stock Exchange, along with its subsidiaries (collectively referred to as the "OUE Group"), taking a loss from an investment accounted for using the equity method. According to the announcement of the unreviewed financial performance of OUE during the current period (the "OUE Announcement") published on the same date as this announcement, OUE expects the loss from its investment accounted for using the equity method to be between SGD 92 million and SGD 0.106 billion, which is due to impairment loss provisions on its developing properties and associates enterprises, affected by the slowdown of the current property market and prevailing economic conditions in mainland China. The loss is non-cash in nature and, according to the OUE Announcement, the loss will not have a significant impact on the operating cash flows and financing requirements of the OUE Group.
HK Chinese Ltd (00655) has released an announcement, expecting the group to obtain a loss of not less than HKD 0.4 billion from its share of an associate for the six months ending on June 30, 2024 (the "current period"), while earning approximately HKD 90.6 million from its share of surplus for the six months ending on June 30, 2023.
The main reason for the loss is due to a subsidiary of a major associate of the company, OUE Limited ("OUE"), which is listed on the Main Board of the Singapore Stock Exchange, along with its subsidiaries (collectively referred to as the "OUE Group"), taking a loss from an investment accounted for using the equity method. According to the announcement of the unreviewed financial performance of OUE during the current period (the "OUE Announcement") published on the same date as this announcement, OUE expects the loss from its investment accounted for using the equity method to be between SGD 92 million and SGD 0.106 billion, which is due to impairment loss provisions on its developing properties and associates enterprises, affected by the slowdown of the current property market and prevailing economic conditions in mainland China. The loss is non-cash in nature and, according to the OUE Announcement, the loss will not have a significant impact on the operating cash flows and financing requirements of the OUE Group.
