On June 11th, Guojia Holding (03789.HK) announced that the company's attributable net profit for the year ended March 31, 2024 is expected to decrease by about 70% to 80% to approximately HKD 21.4 million from the same period last year.

The board of directors believes that the aforementioned decrease in net profit is mainly due to: (1) non-recurring subsidies of approximately HKD 17.7 million for the government's employment protection plan not received in the same period last year, resulting in a decrease in other income for this period; (2) impairment loss provisions recorded for right-of-use assets and leasing land and buildings under property, plant and equipment due to revaluation; and (3) an increase in net provisions for expected credit losses on trade receivables and contract assets due to the impact of market environment and overall industry economic conditions. The decrease in net profit was offset by the increase in gross profit from the group's business operations for this period.

The board of directors hereby emphasizes that the expected credit loss provisions are made based on various assumptions adopted by the group using the forward-looking model for expected future credit losses, and do not represent losses that have already been incurred.