Jinwu Financial News | Huicong Group (02280) issued a profit warning. It is expected that it will record losses attributable to equity holders of about 1.7 billion yuan to 2 billion yuan (same below) for the year ending December 31, 2023, compared with a loss of about 224 million yuan for the same period last year.
The losses were mainly due to anticipated impairment losses relating to the proposed sale of all shares in Beijing Huicong Internet Information Technology, impairment of goodwill and intangible assets associated with cash generating units in the Technology New Retail Business Group, and a number of significant overdue loans in the Group's microfinance business under the Group's platform and corporate services business groups during the year. It is expected that the year ended 31 December 2023 will record losses of approximately 240 million yuan in loan receivables and interest impairment losses.