Zhisheng Group Holdings (08370.HK) announced that it expected to record a loss attributable to the company's owners last year, which will increase by more than 40 per cent compared with the same period in 2020.
The company pointed out that the sharp increase in losses was mainly due to the granting of stock options during the reporting period, and the accounting treatment required to confirm the relevant administrative expenses on the basis of shares according to equity settlement, the amount was more than RMB 11 million; as most potential customers were cautious in purchasing or delaying the replacement of furniture products, the newly signed furniture sales orders were too small, and the sales revenue of the furniture division decreased by more than 10% year-on-year. The furniture division's provision for inventory losses is about tripling on a year-on-year basis, and the furniture division's expected credit losses on trade receivables are about threefold on a year-on-year basis.
In addition, the data center division began to recognize the relevant income according to the progress of the agent management project, and its overall earnings are expected to contribute positively to the Group's performance after deducting the cost of amortizing intangible assets arising from the acquisition of the data center business.