According to the Zhitong Finance App, Pelipo Holdings (00617) announced that the Group is expected to make a net loss of approximately HK$1,042 million for the year ended December 31, 2023, compared with a loss of HK$218 million last year.

Although the Group continued to make profits in the two main business categories of property business and hotel business, its profit contribution during the year was relatively small compared to 2022, particularly the property business category affected by unfavorable conditions in the Hong Kong and mainland China real estate markets. For the financial year ended 31 December 2023, the Group expects to achieve a gross profit of approximately HK$1,125 billion from operating operations. However, due to the sharp rise in interest rates in Hong Kong (especially in the second half of last year), the Group's financing costs increased significantly, and the Group's hotel properties accrued large depreciation charges, so the Group's losses during the year under review increased.

As stated earlier, since all of the Group's hotel properties in Hong Kong are owned and operated by the Group itself, such hotel properties are subject to depreciation charges in accordance with applicable accounting standards. The total depreciation expenses of the Group's 11 hotels during the year were approximately HK$690 million (including HK$123 million for the new Regal Sky City Hotel). Although these depreciation charges have had no immediate impact on the Group's cash flow, they have had an adverse impact on the Group's financial results.