Gowei Technology (02086.HK) Profit Alert: Expected to change from profit to loss of about HK$4.4 million in the medium term

Gelonghui Finance ·  08/11/2023 12:20

02086.HK announced that it expects to record a net loss of about HK $4.4 million for the six months ended June 30, 2023, compared with a net profit of HK $0.1 million for the same period last year.

The Board considers that the shift from net profit to net loss is mainly due to the following factors: (1) the increase in staff costs to HK $20.0 million (previous period: HK $16.5 million) is mainly due to an increase in the number of employees, and reduced wages for employees capitalized into development costs. During the reporting period, the Group recruited more staff to be responsible for overseas development to expand overseas sales. As a result, the number of employees of the Group has increased from 112 on 30 June 2022 to 123 on 30 June 2023. The wages of employees capitalized as development costs were reduced to HK $1.8 million (previous period: HK $2.8 million) due to the fact that more new products were in the research stage during the reporting period. And (2) the decrease in net exchange gains to HK $0.3 million (previous period: HK $1.6 million) is due to a larger decrease in the balance of accounts payable denominated in RMB as a result of the larger depreciation of RMB against the Hong Kong dollar in the previous period, as a result, higher net exchange gains were recorded in previous periods.

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