According to the Zhitong Finance App, Century City International (00355) announced that the Group is expected to make a net loss of approximately HK$670 million for the year ended December 31, 2023, compared with a loss of HK$158.7 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 real estate markets of Hong Kong and mainland China. For the financial year ended 31 December 2023, the Group expects to achieve a gross profit of approximately HK$1,129 billion from operating operations. However, due to the sharp rise in interest rates in Hong Kong, China (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, resulting in increased losses achieved by the Group during the year under review.

As stated earlier, since all of the Group's hotel properties in Hong Kong, China are owned and operated by the Group itself, such hotel properties are subject to depreciation charges in order to comply with applicable accounting standards. The total depreciation expenses of the Group's 11 hotels during the year were approximately HK$690 million (including the depreciation fee of HK$1.23 at the new Regal Space City Hotel). Although these depreciation charges had no immediate impact on the Group's cash flow, they had an adverse impact on the Group's financial results.