Zhitong Financial App News, Campbell International (00675) announced that the unaudited consolidated net loss of the company owners for the six months ended June 30, 2023 is expected to be no more than HK $25 million, while the unaudited consolidated profit of the company owners for the six months ended June 30, 2022 is HK $7.6435 million.
The expected net loss for the six months ended June 30, 2023 was mainly attributable to the following factors: the war in Ukraine had an adverse impact on group customers' sales of finished products to the European market, and persistently high inflation weakened consumer sentiment in these markets during this period, reducing the group's income by about 35% (compared with the six months ended June 30, 2022), while the cost of sales did not reduce proportionally, resulting in a decline in gross profit. And certain forward currency contracts expiring in the second half of 2023 and 2024 achieved fair value losses of approximately HK $17 million (six months ended 30 June 2022: HK $3.6 million), these contracts are entered into to manage the impact of natural currency mismatches that occur in the day-to-day course of the Group's business (as the Group's income is mainly denominated in US dollars and its cost of sales is mainly in RMB).