On December 13, Gelonghui | HOME CONTROL (01747.HK) issued an announcement. It is anticipated that the financial insurance products subscribed by the company may generate accounting provisions of approximately HK$25,240,000 for the year ended December 31, 2024. The company subscribed for the first time on November 13, 2019 for an amount of HK$38,000,000. The Company redeemed part of the investment products twice in September and October 2022, and the outstanding principal amount of the Company's investment in the investment products was HK$25,240,000. The investment products were recently automatically rolled over in May 2024 and are still valid as of the date of this announcement.
The directors believe that since the company currently does not have sufficient data to evaluate the book value of investment products, it is an appropriate measure to make accounting provisions to reflect the full amount of the unredeemed principal amount. Furthermore, the issuer of the investment product has not agreed to redeem the balance of the investment product, and it is still unknown when and whether the unredeemed principal amount can be fully redeemed. The company plans to continue negotiations with the issuer of investment products on the redemption of the outstanding principal amount in accordance with its legal and contractual rights.
