Guolonghui, November 15th - Lisi GP Holdings (00526.HK) announced that the company expects to incur a net loss of not more than RMB 30,000,000 for the six months ended September 30, 2024, compared to a net income of approximately RMB 293,200,000 in the same period last year.
The board of directors believes that the decrease in net income is mainly due to the following reasons: (1) For the six months ended September 30, 2023, the group recorded a pre-tax net income of approximately RMB 131,200,000 due to the repurchase of land by the local government of Ningbo, China; (2) The group expects an increase in valuation loss due to the revaluation of the group's investment properties as of September 30, 2024; and (3) The group anticipates an increase in impairment losses in financial assets and contract assets as of September 30, 2024.
The expected losses resulting from items (2) and (3) above have no impact on the group's cash flow. The net valuation loss of investment properties and the increase in impairment losses of financial assets and contract assets are mainly due to external factors such as China's economic slowdown, high vacancy rates, and the continued downward trend in the property market.
