01173.HK announced that the company expects to record a loss of about HK $48 million to HK $65 million for the year ended March 31, 2022, compared with a loss of about HK $185 million for the previous year.

The loss in the previous year included a subsidy of about HK $43 million from the government, while the Group did not receive any related subsidy in the current year. In the current year, the Group recorded a decrease in losses in both the cosmetics and fashion categories compared with the previous year, mainly due to (I) an improvement in the gross profit margin of the fashion category; (ii) a decrease in sales and distribution costs in both categories; and (iii) a decrease in the impairment of right-to-use assets in both categories. In addition, the fair value of investment properties is expected to increase this year, while the fair value of investment properties decreased by about HK $29 million last year. The Group will continue to focus on its business and take a number of contingency measures, including, but not limited to, continuing to negotiate rent reduction with landlords, actively reducing inventory levels, strictly controlling costs and expenditure, and looking forward to achieving a balance of payments as soon as possible.