Gelonghui, March 18, 丨 Fengzhan Holdings (01826.HK) announced that the Group expects to record a net loss of approximately HK$55 million to approximately HK$65 million for the year ended 31 December 2023, while a net loss of approximately HK$900,000 was recorded for the year ended 31 December 2022.

The net loss was mainly due to impairment losses (after deduction) due to the anticipated credit loss model. It mainly involved about HK$30.5 million in contract assets during the year (due to the recoverability of a client (a mainland Chinese developer currently undergoing debt restructuring procedures)). Since 2022, the Group has initiated arbitration against this client with a view to recovering the relevant amounts. The relevant arbitration is still ongoing.