Asia Std Hotel (00292.HK) announced at the beginning of this month its annual performance for the year ended March, with losses expanding from CNY 0.213 billion in the preceding year to CNY 2.25 billion. The company released its 2024 fiscal year (year ended March of this year) annual report yesterday (30th), pointing out significant losses in its investment portfolio, including bonds issued by the struggling Evergrande Group (03333.HK).

In the 2024 fiscal year (year ended March of this year), Asia Std Hotel recorded investment losses of CNY 2.66 billion, compared to investment losses of CNY 0.624 billion in the same period of the 2023 fiscal year. In its annual report, the company stated that the main reason for the losses was due to several noteholders in its investment portfolio receiving liquidation orders from the Hong Kong courts during the year, resulting in an increase in expected credit losses from its debt securities investments in Asia Std Hotel. The Group also stated that it will continue to strengthen its efforts to negotiate with debt developers for debt restructuring.

The annual report also shows that Asia Std Hotel holds bonds issued by Jinlun and Jiayuan, as well as 3 Evergrande bonds, and the company expects an increase in credit losses totaling CNY 1.79 billion.