BRIEF: Powerlong Commercial profit plunges on weak property market
Property manager Powerlong Commercial Management Holdings Ltd. (9909.HK) said it expects to report that its net profit for 2024 fell between 50.4% and 60.9% from 2023, according to a profit warning issued on Sunday. That means it’s likely to report a 2024 profit of between 177 million yuan ($24 million) and 225 million yuan, based on calculations using its 2023 profit.
The company blamed the sharp decline to the ongoing downturn in China’s property market, and a subsequent increase in default risks for its accounts receivable. Seeking to prepare for such risk, the company conducted impairment tests on its accounts receivable and made provisions accordingly. In addition, the company said it has launched more marketing activities to attract customers in the competitive market, also increasing its costs.
Shares of Powerlong Commercial opened down 1.7% at HKR2.37 on Monday. The shares are down nearly 40% over the past year.
By Lau Chi Hang
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