According to the Zhitong Finance App, China Star Group (00326) announced its annual results for the year ended December 31, 2023. The group achieved revenue of HK$206 million, an increase of 52.15% over the previous year; losses attributable to the owners of the company were HK$289 million, an increase of 207.62% over the previous year; and a loss of HK11.76 cents per share.
The increase in losses was mainly due to a sharp increase in financing costs to HK$143 million (2022: HK$2,414,000; out of a total of HK$101 million, HK$98,861 million has been capitalized as property inventory). Property sales and multimedia and entertainment operations generated significant marketing and sales expenses, which increased marketing, sales and distribution expenses to HK$79.108 million (2022: HK$11.11 million), as well as other operating expenses of HK$53.81 million (2022: HK$20.576 million), which mainly included deposits already paid Projected credit loss (anticipated credit loss) provision. This impact was mainly offset by gross profit of HK$693.31 million (2022: HK$3.413 million) from property development and investment operations and multimedia and entertainment operations.