Summary by Moomoo AI
TONGDA GROUP ISSUED A PROFIT WARNING, EXPECTING A LOSS OF ABOUT HK$11.0 BILLION TO HK$12.0 BILLION IN 2023, CONTRASTING SHARPLY WITH A PROFIT OF HK$1.37 BILLION IN 2022. This profit loss was primarily due to a drop in revenue of 18% to 20% in 2023 and a 57% to 65% decline in gross profit, driven by customer destocking, product deferral, divestiture of subsidiary equity, rising mold costs, slowing inventory flow and closing loss-making factories. In addition, the company recorded a one-time termination fee of approximately HK$0.6 million related to the sale of its smart appliance shell business. Despite the expected large loss, Access Group said it has stable cash flow and ample cash reserves, and remains confident in earnings as the industry warms up. The Company will announce audited consolidated results for 2023 by the end of March 2024.