Gelonghui, April 22 | Dexin China (02019.HK) announced that the company expects to record a net loss of approximately RMB 1.9 billion to RMB 2.05 billion for the year ended December 31, 2023 (net profit of approximately RMB 162 million for the same period of 2022); while losses attributable to shareholders are approximately RMB 2.1 billion to RMB 2.25 billion (the same period in 2022 recorded profits attributable to shareholders of approximately RMB 374 million).
The expected decline is mainly due to (1) the macroeconomic situation and the continued decline in the real estate market, leading to an increase in sales costs; (2) the Group recorded fair value losses in investment properties due to the impact of the market environment; (3) increased sales and marketing expenses and administrative expenses; (4) a loss recorded in the performance of joint ventures and associated companies during the period; and (5) a decrease in the number of construction projects in the current period compared with the same period in 2022, leading to a decrease in capitalization interest rates.