Ligao Group (01622) announced that it is expected that the Group will lose money for 6 months ending June 30, 2023...
According to the Zhitong Finance App, Ligao Group (01622) announced that it is expected that the Group will obtain a net loss of approximately RMB 175 million to RMB 225 million for the six months ending June 30, 2023, while net profit of approximately RMB 185 million for the six months ended June 30, 2022. The expected shift from net profit to net loss is mainly due to the negative impact of the macroeconomic environment and the overall decline in the real estate market in China, which led to a decrease in revenue and gross margin of the Group's projects included in settlement during this period; and the decline in revenue from the repurchase of senior notes during this period.
The Group is expected to have a net loss of approximately RMB 1,500 billion to RMB 2200 billion in fiscal year 2023, while net losses of approximately RMB 5.50 billion to RMB 6.50 billion are expected for fiscal year 2022. The narrowing of expectations for net losses in FY2023 compared to FY2022 is mainly due to a decrease in inventory provisions compared to FY2022 due to the adverse effects of the macro market environment and the overall decline in China's real estate industry; a decrease in losses from the sale of subsidiaries in FY2023; a decline in sales and marketing expenses due to a sharp decrease in contract sales in FY2023; and a reduction in general and administrative expenses for FY2023.