On March 13, GLONGHUI | Territory Holdings (06999.HK) announced that the company expects to record a net loss of approximately RMB 800 million to RMB 110 million for the year ended December 31, 2023, while a net loss of RMB 5,098 million was recorded for the year ended December 31, 2022.

The reduction in anticipated losses is mainly due to a sharp reduction in impairment loss provisions in the construction sector during the reporting period compared to 2022. For the year ended December 31, 2022, the Group recorded high impairment loss provisions in the construction industry, taking into account the recurrence of the COVID-19 pandemic, the weak domestic economy and the continued contraction of demand in the real estate market. Due to continued unfavorable market conditions, the company has adopted an austerity business strategy and did not launch new projects during the reporting period. As a result, despite a further decline in the market, the company recorded a smaller impairment loss during the reporting period.