Gelonghui, March 13, 丨 Wancheng Holdings (02892.HK) issued an announcement. Compared with the net profit of approximately RMB 114.4 million after tax recorded by the Group for the year ended December 31, 2022, the Group expects to record a loss of RMB 530.0 million to RMB 680.0 million in fiscal year 2023. Furthermore, compared with the profit attributable to equity shareholders of approximately RMB 69.2 million in fiscal year 2022, the loss attributable to equity shareholders in fiscal year 2023 is estimated to be between RMB 420.0 million and RMB 550.0 million.
The company's financial results in fiscal year 2023 were mainly affected by the macroeconomic environment in mainland China, particularly the real estate industry, which resulted in significant depreciation of (i) the Group's properties under development, properties under construction and completed; (ii) the Group's investment properties; and (iii) the Group's associated companies' properties. As a result, the Group is expected to (i) record gross losses in FY2023 rather than gross profit for FY2022; (ii) record losses attributable to associated companies in FY2023 rather than recorded affiliate profits in FY2022; and (iii) change the valuation of investment properties from valuation earnings in FY2022 to losses in 2023.