On December 23, Glorious Holdings (00626.HK) announced that the group predicts a loss of approximately HKD 0.19 billion for the fiscal year ending December 31, 2024 (before goodwill impairment), while the profit for the fiscal year ending December 31, 2023, was HKD 14 million. This is mainly due to: (i) an expected increase in credit loss provisions of approximately HKD 0.17 billion, primarily arising from an increase in missed payments and bankruptcy cases for rental and purchase loans and private loan borrowers, alongside additional impairment provisions for a few corporate borrowers in the significant decline of public vehicle license values; (ii) a further increase in fair value losses on investment properties of approximately HKD 20 million to HKD 50 million; and (iii) an increase in operating costs of approximately HKD 40 million, mainly due to rising employee costs to retain talent.

Given the challenging operating environment and market conditions anticipated in the short to medium term, the Board of Directors is taking a prudent approach to the company's Financial Estimates. Due to the above reasons, the group predicts that goodwill impairment will be recognized for the fiscal year ending December 31, 2024, with an estimated impairment ranging from HKD 0.6 billion to HKD 0.9 billion.

After accounting for the goodwill impairment, the total loss attributable to shareholders for the fiscal year ending December 31, 2024, is estimated to be approximately HKD 0.8 billion to HKD 1.1 billion. Goodwill impairment is a non-cash item and will not affect the group's operating cash flow. It will be recorded only at the group level and will not impact the financial position or regulatory ratios of the company's two main operating subsidiaries, namely, PUBLIC BANK (HONG KONG) LIMITED ('PUBLIC BANK (HONG KONG)') and PUBLIC FINANCE LIMITED ('PUBLIC FINANCE').

The consolidated common equity tier 1 capital ratio and total capital ratio of PUBLIC BANK (HONG KONG) Group (which includes PUBLIC BANK (HONG KONG) and its main subsidiary PUBLIC FINANCE) exceed 24.0% and 24.5%, respectively. The consolidated liquidity maintenance ratio and core funding ratio of PUBLIC BANK (HONG KONG) Group exceed 60% and 155%, respectively. The group's capital and liquidity situation remains strong and well above regulatory requirements to meet its Business and operational needs.