On August 6th, 2024, Chinese est h (00127.HK) announced that the group's revenue for the six months ending June 30, 2024 may decrease by 23% to 33%, and the comprehensive loss attributable to the owners of the company may be HKD 360,000,000 to HKD 480,000,000 (compared to the revenue of HKD 271,000,000 and the comprehensive profit attributable to the owners of HKD 147,000,000 during the same period last year).
The main reasons for the decrease in revenue and the resulting losses are as follows: (1) the decrease in investment income from holding for trading measured at net asset value. During the period, the group sold listed investments held for trading and expected realized gains of approximately HKD 6,000,000 (2023: HKD 62,000,000). (2) The fair value change of investment properties resulted in a loss. The group reassessed its investment properties as of June 30, 2024 and recorded a fair value loss during the period. The fair value loss during the period was mainly due to the decrease in fair value of properties located in Hong Kong. Unrealized fair value changes are non-cash items and do not have any impact on the group's cash flows.