According to the announcement by China's Watts Int'l Ocean Construction (02258), the group is expected to record a net loss of approximately RMB 0.111 billion to RMB 0.124 billion for the six months ended June 30, 2024, while it recorded a net income of approximately RMB 12 million for the same period in 2023. The loss was mainly due to (i) an increase in impairment losses of financial assets and contract assets, resulting in an increase in general provisions of approximately RMB 44 million to RMB 49 million due to longer aging of accounts receivable and an increase in the provision rate, and an increase of specific provisions of approximately RMB 40 million to RMB 45 million for certain municipal construction projects; and (ii) challenges in the macroeconomic environment and a weak Chinese real estate market, which led to a decrease in the company's revenue for municipal public construction business by approximately 46.2%. Despite this, the port, channel and ocean engineering business units of the company remained strong during the relevant period.