HK Stock Market Move | CHINA LIT(00772) opened over 5% lower provision for impairing the goodwill of Xinli exceeding 1 billion yuan estimated net loss of approximately 150 million to 250 million yuan last year.

CHINA LIT (00772) opened more than 5% lower after issuing a profit warning, dropping by 5.01% to 29.4 Hong Kong dollars as of the time of writing, with a turnover of 1301.83 million Hong Kong dollars. On the news front, CHINA LIT issued a profit warning, expecting a net loss of approximately 150 million to 250 million Chinese yuan under the International Financial Reporting Standards (IFRS) for the fiscal year 2024. This is in contrast to a net profit of 804 million Chinese yuan under IFRS for the year ending December 31, 2023, mainly due to non-cash impairment of goodwill from the acquisition of Xinli Media Holdings Limited in 2018, estimated at around 1.05 billion to 1.15 billion Chinese yuan. The board of directors expects a non-IFRS net profit of approximately 1.1 billion to 1.15 billion Chinese yuan for the fiscal year 2024, which is roughly consistent with the 1.129 billion Chinese yuan for the year ending December 31, 2023.