Gelonghui August 4th 丨Luxin Hydrophilic Colloid (01084.HK) announced that the amount of unaudited comprehensive profit (“net profit”) due to company owners in the first half of 2023 is expected to decrease 75% to 80% from the net profit of RMB 104.4 million for the six months ending June 30, 2022, to between RMB 20.8 million and RMB 26.1 million.
The decline in net profit in the first half of 2023 is mainly due to the continuous increase in the purchase cost of seaweed in 2022, which pushed up the average cost of sold inventory in the first half of 2023, and the combined effect of the increase in the cost of products sold by the Group and the decrease in sales volume of processed carrageenan products due to a decrease in demand from overseas customers, which is believed to be cyclical.