On December 12, Gelonghui announced that EVER REACH GP (03616.HK) has disclosed a preliminary assessment based on the company's latest consolidated management accounts for the year ending December 31, 2023, and for the six months ending June 30, 2024, as well as currently available information:

(i) The Board of Directors expects the fiscal year 2023 to record revenue of approximately RMB 3.4 billion to RMB 3.6 billion, an increase of approximately 17.2% to 24.1% compared to revenue of RMB 2.9 billion for the year ending December 31, 2022; (ii) The Board of Directors expects the fiscal year 2023 to record estimated net profit after tax of RMB 34.8 million to RMB 38.8 million, a decrease of approximately 50.1% to 55.3% compared to the net profit after tax of RMB 77.8 million for the fiscal year 2022; and (iii) The Board of Directors expects to record an estimated net loss after tax of RMB 35.1 million to RMB 37.1 million in the first half of 2024, whereas for the six months ending June 30, 2023, a net profit after tax of RMB 69.2 million was recorded.

The expected profit for the fiscal year 2023 is anticipated to decrease, mainly due to (1) a decline in gross margin for the fiscal year 2023, primarily attributable to increased costs of properties held for sale; (2) an increase in provisions for the decrease in the value of properties held for sale or under construction for sale in the fiscal year 2023; and (3) an increase in income tax expenses. The expected losses for the first half of 2024 are mainly due to: (1) an increase in property unit costs leading to a decline in gross margin; and (2) an increase in provisions for the decrease in the value of properties held for sale or under construction for sale.

Trading remains suspended.