On November 24, Gelonghui (00733.HK) announced that according to a recent review of the Group's loan portfolio, the credit quality of some of the Group's customers deteriorated in the second half of 2023. According to the latest information obtained by the Group, the Group expects that loans receivable of approximately HK$110 million to HK$140 million may not be repaid on time.
In addition, due to the downturn in China's real estate market, several of the Group's customers involved in real estate-related business and real estate development are facing financial instability and cash flow difficulties. The Group maintains regular communication with such customers to recover outstanding amounts. According to the latest information available to the Group, it is unlikely that the Group expects to recover the amount of approximately HK$100 million to HK$130 million in accounts receivable and other receivables.
Currently, the Group has sufficient working capital and its business continues to operate. The above incident will not affect the normal operation of the Group at present. The company's management is also currently evaluating the impact of these events, particularly the financial impact on the Group's consolidated financial statements. The board of directors of the company will continue to monitor developments and make further announcements on any significant updates in due course.