Zhitong Financial APP News, Shu Lang (02385) issued an announcement that the Group is expected to achieve an unaudited consolidated loss of about 35 million yuan (RMB, the same below) to 40 million yuan for the six months ended June 30, 2023, compared with an unaudited consolidated loss of about 42.3 million yuan for the same period in 2022.
The expected loss is mainly due to a decrease in sales of students' personal tablets and wearable products for the six months ended 30 June 2023. The main reasons for the decrease in sales are: as the domestic economy is affected by the international environment, product sales are negatively affected to a certain extent; enterprises from other industries join the educational electronics industry, which intensifies the competitive pressure in the industry; and the epidemic has led some consumers to adopt a more cautious attitude towards consumption, making product sales less than expected. The decrease in sales was partially offset by an increase in gross margin, which was mainly due to higher pricing of new products and increased sales share of proprietary platforms. As a result, gross profit decreased from about 66.5 million yuan in the six months ended June 30, 2022 to about 48.6 million yuan in the six months ended June 30, 2023; affected by the changes in the value of financial assets invested in the reporting period disclosed in the company's 2022 annual report, the loss of fair value changes in financial assets recognized at fair value in profit or loss in the six months ended June 30, 2023 was about 20.2 million yuan. And for the six months ended June 30, 2023, R & D expenditure was about $25.5 million, compared with $16.2 million in the same period in 2022. The increase in R & D expenditure is mainly due to the group's increased investment in digital resources and new product development.
In addition, the Group achieved an adjusted net loss of approximately $15 million to $20 million for the six months ended 30 June 2023, compared with an adjusted net profit of approximately $17.5 million for the same period in 2022. The substantial decrease is mainly due to the above reasons.