GS Holdings warns it expects to post 2021 net loss

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GS Holdings warned Friday it expected to swing to a net loss for 2021 after a “significant negative impact” to its revenue from the reduction and termination of branding, operation and procurement (BOP) agreements.

In March, the company reduced an aggregate BOP service fee by 40 million yuan to 10 million yuan from 50 million yuan previously for the months of January, February and March, GS Holdings said in a filing to SGX.

In July, GS Holdings said BOP agreements with six existing outlets were terminated.

In August, GS Holdings said health management service agreements with eight existing outlets were terminated.

“The group is currently exploring and evaluating other business opportunities to complement its existing businesses so as to cushion the financial impact that the group may suffer in the financial year ending 2022 due to negative impact from the on-going Covid-19 situation,” GS Holdings said in the statement.

The company said it expected to report its 2021 results by 1 March.