Gelonghui, March 20, 丨 Baifu Holdings (01488.HK) announced that the company expects to record a net loss attributable to equity holders of the company for the year ended December 31, 2023, of approximately RMB 130 million to approximately RMB 170 million.
The expected loss is mainly due to the estimated impairment of trademarks estimated at RMB 80 million to RMB 110 million this year. This impairment is mainly due to the decline in corporate value and sales ratio of comparable listed companies under the Group's hot pot brand New Spicy as of December 31, 2023. This is one of the key assumptions used in the impairment assessment. The initial impairment assessment is carried out on a prudential basis in accordance with applicable accounting principles. Trademark impairment losses are non-cash items and have no impact on the Group's cash flow and operations.
The Group will closely monitor market conditions and adjust business strategies and operations. At the same time, it will also strictly manage operating capital to ensure steady cash flow. In the future, the Group will continue to firmly implement the long-term development policy. On the one hand, it will improve operational efficiency, vigorously develop the franchise business, and continue to promote the construction of a digital system; on the other hand, it will fully unleash its investment enabling advantages and enhance the corporate value of the invested brands.