Zhitong Financial APP News, Bailibao Holdings (00617) announced that the group expects to incur a net loss of about HK $140 million in the mid-2021 period, compared with a loss of HK $558.8 million in the six-month period of the same period in 2020.

According to the announcement, the Group's core hotel business continues to be severely affected by the 2019 coronavirus outbreak, which is mainly operated through Regal Hotels International Holdings Limited (Regal), the company's major listed subsidiary. Although the Regal will be able to maintain the overall operating net profit of its hotel business during the mid-2021 period, the contribution of this business segment is much lower than its normal level before the outbreak.

It is expected that the loss incurred by the Group in the mid-2021 period will be significantly lower than that in the same period in 2020, which is mainly due to the fact that, during the mid-2021 period, the Group is a joint venture company holding 50% equity interest with the tycoon, which is a joint venture company from Prunr Holdings Limited Holdings Limited. The Regal Peak in Kau to, Sha Tin, which is actually also a subsidiary of the Group, should be equal to an increase in profit contribution from property sales completed during the period, fair value gains on investment property and financial assets, as well as reduced impairment losses on other assets and lower financing costs arising from the reduction in current interbank interest rates.

In addition, depreciation charges of HK $295.5 million have been provided for the Group's hotel properties in Hong Kong, China in mid-2021, although the depreciation charges have no impact on the Group's cash flow, but have adversely affected the Group's performance.