Great Wall Pan Asia Holdings (00583) announced that the group expects to obtain a comprehensive profit due to unaudited shareholders in 2023...
According to the Zhitong Finance App, Great Wall Pan Asia Holdings (00583) announced that in 2023, the group expects to obtain a comprehensive profit of about HK$271 million to HK$299 million unaudited, together with an unaudited basic profit of about HK$17.26 to HK$19.08 per share, down about 6% to 15% from the consolidated profit attributable to audited shareholders of HK$318 million and the audited basic profit per share of HK$20.26 million.
According to the announcement, the expected decline in profit is mainly due to an increase in the Hong Kong Interbank Interest Rate (HIBOR) interest rate, the Group's financial expenses for loans accrued under this interest rate in 2023 are expected to increase by about HK$110 million to HK$120 million, an increase of 67% to 73% over the same period in fiscal year 2022. The increase in the above expenses is partially offset by an increase of about HK$107 million to HK$113 million in revalued fair value earnings from investment properties on 31 December 2023; and the Group is expected to share the profits of an associated company in 2023 from 2022 HK$466 million decreased by approximately HK$36 million to HK$44 million to approximately HK$422 million to HK$430 million. This is due to the increase in the associated company's financial expenses in 2023.
According to the announcement, the increase in HIBOR interest rates has led to an increase in financial expenses for the Group's associated companies (mainly composed of commercial properties). Despite the above situation, since sharing the profits of an associated company is non-cash, and the group's investment in the joint company is a long-term investment project to obtain a stable return on investment, this will not have a significant impact on the Group's operating cash flow, and the Group's overall financial and business conditions remain stable.