Zhitong Finance App News, Hengjia Financial Leasing (00379) issued an announcement. Since it is unable to control the Beijing Hengjia Board of Directors, the board of directors has assessed the relevant situation and believes that the group no longer has control of the group company composed of Beijing Hengjia and its subsidiaries on July 31, 2023 (date of termination of comprehensive accounting). Therefore, it decided on February 8, 2024 that Beijing Hengjia and its wholly-owned subsidiaries (i.e. Hengjia (Tianjin) Financial Leasing Co., Ltd. and Hainan Jintong Huafu Technology Co., Ltd.) will terminate the comprehensive recording of financial leasing business results in China until the end of the group Consolidated financial statements for the fiscal year ended December 31, 2023.

A loss of not less than HK$35 million is expected for the year ended 31 December 2023, and a profit of HK$43.6 million for the year ended 31 December 2022. The Group's anticipated change of profit to loss is mainly due to the net effect of the following factors arising from the termination of consolidated accounting subsidiaries: there was no termination of confirmation of one-time income from financial assets and related financial liabilities measured at amortized cost relating to the Group's financial leasing projects in the current year, and the corresponding year, the Group expected a significant reduction in impairment losses under the credit loss model, while the impairment loss for the corresponding year was about HK$62.2 million, and the impairment loss reduction was not less than HK$50 million.