Zhongzheng Intl (00943) announced that the group expects to obtain the company's owners by the end of the financial year ending June 30, 2024...
Zhongzheng Intl (00943) announced that the group expects to incur a comprehensive loss attributable to owners of approximately 0.68 billion to 0.72 billion Hong Kong dollars as of the financial year ending on June 30, 2024, with a comprehensive profit attributable to owners of approximately 69 million Hong Kong dollars in the same period in 2023.
The announcement stated that the loss for the year was mainly due to (i) a decrease in gross profit from approximately 0.254 billion Hong Kong dollars in the 2022/23 financial year to approximately 23 million Hong Kong dollars in the 2023/24 financial year. In the 2022/23 financial year, the group had delivered most residential units of a property development project located in Dongguan, China, to buyers in July 2022, bringing in revenue of approximately 0.697 billion Hong Kong dollars for the group during the 2022/23 financial year, boosting the group's performance. However, the income from the Dongguan project in the 2023/24 financial year was only about 47 million Hong Kong dollars. At the same time, revenue from healthcare and household products business also decreased to approximately 0.1 billion Hong Kong dollars (2022/23 financial year: 0.172 billion Hong Kong dollars). The decrease in revenue was mainly due to several customers starting destocking processes around or shortly after the beginning of 2023; (ii) impairment losses of approximately 0.289 billion Hong Kong dollars on equity interests in a joint venture engaged in primary land development in Luanping, China (2022/23 financial year: 76 million Hong Kong dollars); (iii) impairment losses of approximately 68 million Hong Kong dollars on receivables from joint ventures (2022/23 financial year: none); (iv) impairment losses of approximately 0.196 billion Hong Kong dollars on properties under development and awaiting sale in a property development project in Nanjing, China (2022/23 financial year: none); (v) finance costs of approximately 0.192 billion Hong Kong dollars (2022/23 financial year: 85 million Hong Kong dollars) primarily related to overdue bank loans for the Nanjing project; (vi) impairment losses of approximately 66 million Hong Kong dollars on other receivables (2022/23 financial year: 2 million Hong Kong dollars); and (vii) a loss attributable to joint ventures of approximately 68 million Hong Kong dollars (2022/23 financial year: 38 million Hong Kong dollars). The aforementioned losses were partially offset by reversal of impairment losses of approximately 32 million Hong Kong dollars due to the restoration of coal mining permits and reduced administrative expenses of approximately 10 million Hong Kong dollars.
