Zhitong Financial APP News, Junko Holdings (08035) issued an announcement that compared with the profit attributable to the owners of the company for the six months ended June 30, 2022, the group expects to achieve a loss of about HK $9 million to about HK $9.5 million for the six months ended June 30, 2023.
According to the announcement, the loss attributable to company owners for the six months ended June 30, 2023 was mainly due to (I) the slower-than-expected recovery of freight volume due to the impact of the COVID-19 epidemic and the economic downturn, resulting in a decrease in freight volume and revenue from air and maritime agency services; (ii) lower gross profit margins for logistics and warehousing services; and (iii) loss on surrender of life insurance policy deposits. And (iv) the increase in bank borrowing rates resulted in higher financing costs and increased interest expenses from loans from major shareholders and other borrowings, which did not occur during the six months ended June 30, 2022.
Despite the above, the Group achieved (I) an increase in gross profit on e-commerce performance services; (ii) a decrease in administrative and sales expenses (due to the cessation of professional fees arising from the Group's ongoing litigation for the six months ended June 30, 2023, resulting in a reduction in legal and professional fees for the six months ended June 30, 2023) And (iii) the decrease in salaries and allowances due to a decrease in the number of employees for the six months ended 30 June 2023.