MAYER HOLDINGS (01116) is expected to achieve a one-time loss of 335 million yuan in the 2023 fiscal year.

MAYER HOLDINGS (01116) announced the acquisition of Happy (Hong Kong) New City Group Limited and its subsidiaries. The redevelopment project of Montang Village, which is still in the initial development stage, has been put on hold. According to the audited financial statements of the target company, it is unable to achieve the target profit level as stated in the purchase agreement. Due to several lawsuits against the former management of the target group, the Montang Village redevelopment project has been stagnant for the past two years, and it is expected that the operations of the target group will be significantly affected. The board of directors and its audit committee have concluded that it is not commercially reasonable for the company to continue investing time and resources into the target company due to its uncertain prospects. Despite taking legal action against the seller for potential losses incurred under the purchase agreement relating to this group, the target company is deemed unable to continue its operations. Therefore, the group expects to incur a one-time loss of RMB 335 million for the fiscal year ending June 30, 2023. The above adjustments are not expected to have any impact on the group's cash flows. The company has not yet determined the full-year performance for the fiscal years ending 2023 and 2024, as well as the mid-year performance for the six months ending December 31, 2023 and 2024, which will depend on the determination of all relevant performance and accounting treatment methods. If there are any further significant impacts on the company's estimated comprehensive income, the company will make additional announcements. In addition, trading in the company's shares remains suspended.