On March 25, GLONGHUI | Jiahua Department Store Holdings (00602.HK) announced that the Group is expected to record a net loss of no more than RMB 160 million for the year ended December 31, 2023, compared with a net loss of approximately RMB 108 million for the year ended December 31, 2022.
The main reasons for this are: (a) the general decline in local consumption power after the withdrawal of foreign capital from China in Shenzhen and the novel coronavirus pandemic, causing some of the Group's major stores to generate net operating losses; (b) impairment losses on property, plant and equipment, intangible assets and leasehold rights generated this year totaled about RMB 40 million; (c) impairment losses on loans receivable generated this year were approximately RMB 36 million; and (d) the net depreciation of the market value of investment properties was approximately RMB 13 million.