[ET Net News Agency, 4 July 2018] Chinese Estates (00127) said it is expected that an
unrealised loss on fair value change of about HK$5.9 billion would be recorded as an other
comprehensive expense for the six months ended 30 June 2018, based on the preliminary
assessment on the closing market price of the China Evergrande Group (03333) shares as at
29 June.
As at 30 June 2018, the Group held a total of 857.5 million shares in Evergrande,
representing about 6.5% of the total issued share capital of Evergrande as at 3 July.
In the first half of 2018, the Group disposed of certain listed securities investments
and treasury products, which comprised bonds. As a result of the disposal, it is estimated
that a realised loss of about HK$4.6 million would be recognised in profit/loss within the
consolidated statement of comprehensive income for the reporting period. Unrealised loss
on fair value changes of the remaining listed securities investments and treasury products
(other than the Evergrande shares) which comprised bonds for the Period was estimated to
be about HK$0.9 billion. (HL)