Chishida (06918) issued a profit warning that the year ending December 31, 2022 (FY2022) is expected to record revenue of approximately RMB 169 million, a decrease of about 40.3% from FY2021; and a net loss of approximately RMB 77.4 million, a decrease of about 396.6% from the net profit of RMB 26.1 million recorded in FY2021.
According to the announcement, the above performance changes were mainly due to (i) the impact of COVID-19, which led to a decrease in sales in mainland China; (ii) gross margin fell by about 11.8% mainly due to increased material and production costs; (iii) administrative expenses increased by about RMB 29.4 million mainly due to confirmation of share-based payments; (iv) net impairment losses on trade and other accounts receivable increased by about RMB 16.1 million; and (v) other revenue decreased by about RMB 16.1 million compared to fiscal 2021, mainly due to reduced interest income and government subsidies 10,000 yuan.
The company's stock trading continues to be suspended.