BJ HEALTH issued a profit warning, expecting the annual loss attributable to shareholders to increase year-on-year
BJ HEALTH issued a profit warning, expecting the annual loss attributable to shareholders for the year ending December 31, 2024, to increase by approximately HKD 55 million compared to the previous year. The increase in loss is mainly due to foreign exchange losses, impairment provisions resulting from the decline in the stock prices of listed joint ventures, increased losses from joint ventures, and impairment of other receivables
According to the announcement from BJ HEALTH (02389), the company expects that the loss attributable to the owners of the company for the year ending December 31, 2024, will increase by approximately HKD 55 million compared to the same period in 2023. During this year, the group's daily operations remained relatively stable, and the increase in loss was mainly due to the net increase in the following expenses: a foreign exchange loss of approximately HKD 29.29 million due to the depreciation of the Canadian dollar and the Renminbi, compared to a foreign exchange gain of approximately HKD 9.237 million in the same period last year; a decline in the stock prices of the listed associates held by the group, leading to an impairment provision of approximately HKD 11.539 million during the impairment assessment, compared to an impairment reversal of approximately HKD 1.211 million in the same period last year; an increase in the share of losses from joint ventures by HKD 7.718 million, mainly due to increased interest expenses from joint ventures caused by rising interest rates; and an impairment of approximately HKD 14.165 million on other receivables last year, while a similar asset impairment this year is approximately HKD 5 million
