Ever Reach Group (Holdings) (HKG:3616) expects a loss between 35.1 million yuan and 37.1 million yuan for the first half of this year, against a profit of 69.2 million yuan logged for the same period last year, a Thursday Hong Kong bourse filing said.

The company attributed the expected loss in the six months ended June 30, to an increase in provision for property held for or underdevelopment for sale resulting from a decrease in their value during the reporting period, and a decrease in gross profit margins resulting from increased unit cost of properties.

For the year ended Dec. 31, 2023, the company expects to log a profit between 34.8 million yuan and 38.8 million yuan, 50.1% to 55.3% lower than 77.8 million yuan recorded for 2022.

The trading in the shares of the company has been suspended since April 2 and will remain so until the company fulfills resumption guidance.