Zhongtong Finance APP News, Century C International (00355) announced that the Group is expected to have a net loss of approximately HKD 0.423 billion for the six months ending June 30, 2024, compared to a loss of HKD 0.244 billion during the same period in 2023.

During the review period, the Group's overall business operations continued to maintain positive performance. However, due to the weakening of the real estate markets in Hong Kong and mainland China, the profit contribution from property sales during this period was significantly lower than that of the first six months of 2023. As for the hotel business operated by the Group's listed subsidiary, Regal Hotels International Holdings Limited, the operating performance remained stable, with pre-depreciation operating profit increasing by nearly 60% on an annual basis despite the challenging operating environment.

In the first half of 2024, the Group is expected to have a gross profit of approximately HKD 0.412 billion, and the expected operating profit (EBITDA) before depreciation, financing costs, and taxes is approximately HKD 87 million.

However, taking into account the relatively high level of interest rates in Hong Kong during the period, which increased financing costs, as well as the increase in tax expenses for property projects conducted in China by another listed subsidiary of the Company, Cosmopolitan International Holdings Limited, the expected comprehensive loss for the six-month review period has increased.

In addition, since the Group owns and operates hotel properties in Hong Kong, depreciation expenses need to be recognized in accordance with applicable accounting standards. Therefore, a depreciation expense of approximately HKD 3.38 billion was provided for the Group's hotel properties in Hong Kong, which has had a negative impact on the Group's reported performance, although it has no impact on the Group's cash flow.