Tai United Holdings Reports 22.6% Narrower Loss Before Tax at HK$212.6 Million on Lower Revenues for Six Months Ended 30 June 2024

Reuters
Sep 29
Tai United Holdings Reports 22.6% Narrower Loss Before Tax at HK$212.6 Million on Lower Revenues for Six Months Ended 30 June 2024

Tai United Holdings Limited reported revenue of HK$64.8 million for the interim period ended 31 December 2024, down 1.5% from HK$65.8 million in the same period last year. The decrease was mainly attributed to lower sales of medical equipment in China. The Group recorded a pre-tax loss of HK$212.6 million, narrowing from a pre-tax loss of HK$274.7 million in the prior-year period. Loss attributable to owners of the company decreased to HK$198.7 million from HK$251.7 million for the period ended 30 June 2024. The reduced loss was primarily due to a combination of factors, including a fair value decrease of HK$83.1 million in investment properties, a provision of HK$50.3 million for guarantee contracts related to undisclosed guarantees on loans for shopping centres in Guangzhou and Jinzhou, and finance costs of HK$76.7 million mainly related to a bank loan of approximately RMB1,345 million for the acquisition of the Guangzhou shopping mall. An income tax credit of HK$14.3 million was recorded during the period. The Group's flooring materials trading segment posted revenue of HK$13.3 million, a decrease of 3.6% from HK$13.8 million in the previous period. The segment loss for financial services was HK$1.8 million, compared to a loss of HK$1.9 million in the same period last year, while the distressed debt assets management business recorded a loss of HK$1.7 million, slightly below the HK$1.8 million loss previously. During the period, Tai United completed the sale of its UK luxury property subsidiary for GBP50 million. A deposit of GBP19 million from the transaction was used to repay a defaulted UK loan, and a further GBP3 million was paid in January 2025 for property refurbishment as per the sale agreement. The company stated that it is adopting a prudent approach in its financial investments and has postponed the commencement of its money lending business in Hong Kong due to uncertain market conditions.

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