On November 22, Gelonghui reported that dingyi gp inv (00508.HK) announced that although its revenue for the six months ending September 30, 2023, was 117.8 million HKD, which increased to 174.9 million HKD for the six months ending September 30, 2024, the group expects that its net profit for this period will be approximately 27.3 million HKD, a decrease of about 74% compared to the previous period's net profit of approximately 106.1 million HKD.
The considerable increase in revenue during this period was due to a surge in the sales value recognized from properties developed by the group in china during the review period. The significant decrease in net profit during this period was mainly due to the combined effects of: (1) a drop in gross margin of nearly 30 percentage points; (2) a provision for impairment losses on receivables and interest of approximately 12.5 million HKD (compared to a reversal of impairment losses of approximately 84.8 million HKD in the previous period); (3) an increase in selling and distribution costs of about 16 million HKD; and (4) offset by the fair value changes of certain financial assets amounting to approximately 51.2 million HKD.
