According to the Zhitong Finance App, Hongyang Real Estate (01996) announced that the Group expects to achieve net losses of approximately RMB 7.5 billion to RMB 8.5 billion for the year ended December 31, 2023 (same period in 2022: net loss of RMB 3,938 billion).

According to the announcement, net losses for the year were mainly due to: (1) the market has not recovered, the scale of the real estate industry continues to decline, and the Group's real estate project revenue and gross profit declined year-on-year; (2) based on annual sales conditions and management's expectations for sales prices, the Group and some of the Group's joint ventures further accrued impairment losses for properties under development and completed properties held for sale; (3) fair value losses caused by some investment properties held by the Group; and (4) the decline in the RMB exchange rate against the US dollar led to an increase in exchange losses.