On November 21, Glonghui announced that reliance glo hl (00723.HK) expects to record a net loss of no more than 13 million Hong Kong dollars in the first half of 2024, compared to a loss of approximately 3.68 million Hong Kong dollars for the six months ending September 30, 2023.
The group's loss is mainly attributable to (i) losses in the group's timber supply chain operations, primarily due to reduced marginal profit, the impact of the Russia-Ukraine war, and the outbreak of the israeli-palestinian conflict leading to soaring energy costs in europe, resulting in significant increases in production, transportation, and freight costs, as well as impairment losses on receivables; and (ii) losses in the group's lending operations, mainly due to (a) a decline in income caused by the reduction in the scale of its loan portfolio and (b) impairment losses on non-performing assets recorded in the first half of 2024.
