On November 26, Gelonghui reported that pku resources (00618.HK) announced the group expects to record a loss of approximately 1200 million to 1500 million yuan for the six months ending September 30, 2024, while a profit of approximately 166 million yuan was recorded in the same period last year.
The expected loss during the period is primarily due to the following reasons: (i) a decrease in the area of property development projects delivered, leading to a reduction in gross profit from property development business; (ii) a substantial inventory impairment provision required due to the continued downturn in the real estate market; and (iii) expected guarantee liabilities and provisions related to lawsuits arising from guarantees provided by the group for its subsidiary Hong Kong Huzi Co., Ltd., which was sold on March 25, 2022, and those guarantees continue to be effective.
