Jinyi Group Holdings (00565)'s net loss for the year is expected to narrow year-on-year to no less than HK$270 million

According to the Zhitong Finance App, Jinyi Group Holdings (00565) announced that it is expected that the Group may achieve a net loss of no less than HK$270 million for the year ended June 30, 2024, compared with a net loss of approximately HK$683 million for the year ended June 30, 2023.

The board of directors believes that these net losses are mainly due to the Group's fair value loss of about HK$260 million in investment properties for the year ended June 30, 2024, due to the slow recovery of China's macroeconomic economy this year, especially the real estate market. Some real estate companies are still facing financial pressure. Under the influence of multiple factors, both supply and demand sides of the commercial real estate market are still weak; and the impairment loss of about HK$89 million on rental deposits increased credit risk to a certain extent due to the seizure of certain areas of the shopping center and property rights transfers by various banks and financial institutions to exercise their rights based on collateral set up by the owner of Jiachao Shopping Center.