Zhitong Financial APP News, Shengbai Holdings (02340) announced that the Group expects to achieve the following financial results in the six months ended June 30, 2023: earnings for the period are about 20% to 25% lower than those in the first half of 2022. And the after-tax loss for the period was between HK $5 million and HK $9 million, while the after-tax profit for the previous period was approximately HK $439.8 million, including a continuing operating profit of approximately HK $1.3 million and a discontinued business profit of approximately HK $438.4 million arising from the completion of the sale of the property and facilities management business and ancillary business in Hong Kong, China on 10 January 2022.
In addition to the significant gains from the sale, the reasons for the losses during the period are as follows: the property market remained in the doldrums during the period, resulting in a lack of sufficient orders for new interior decoration and special projects to be replenished; the progress of the Group's existing projects was delayed due to delays in the handover of the site; during the period, provision was made for the interim costs order of the Group to pay the plaintiff's fees on an indemnity basis based on the judgment made by the court. The increase in staff costs arising from supporting legal proceedings during the period; and the recognition of one-off subsidies for employment protection schemes launched by the Hong Kong SAR Government of China in the past.