Ligao Health Life (02370) issued an announcement. It is expected that the Group will achieve the year ending December 31, 2022...
Zhitong Finance App, Ligao Health Life (02370) announced that it is anticipated that the Group will obtain net profit of no more than RMB 10 million for the year ended December 31, 2022, while net profit for the year ended December 31, 2021 is approximately RMB 40.1 million. This is mainly due to a significant increase in impairment loss provisions relating to trade payments receivable from third parties and related parties, other third party receivables, and related and non-controlling interest receivables for the year ended December 31, 2022.
The increase in provisions for impairment losses for the year ended December 31, 2022 is due to a significant increase in credit risk on payments receivable from related parties and third parties, taking into account the current economic environment of the Chinese real estate industry and the financial situation of related parties and third parties.
Furthermore, the board of directors and company management have been working closely with the company auditors to finalize the 2022 annual results, which will be announced in due course.