On March 18, Ge Longhui | Tongtian Liquor (00389.HK) announced that for the year ended December 31, 2023, the Group expects to record annual losses and overall expenses of not less than RMB 70 million, while the corresponding year last year recorded annual losses and overall expenses of about RMB 27.6 million.

According to the announcement, projected losses and overall expenses for the year are mainly due to (i) the cancellation of certain obsolete and slow-selling inventory, right-of-use assets and impairment losses of property, plant and equipment, and anticipated credit loss provisions for trade accounts and other receivables during the year; and (ii) increased sales and distribution expenses for the year to establish a brand, sell and market the Group's products.