Zhitong Financial APP, Garry International (00822) announced that the Group expects to achieve a net loss of about HK $20.5 million to HK $23.5 million for the six months ended June 30, 2023, compared with a net profit of about HK $18.5 million for the same period in 2022.
The announcement said the net loss was mainly due to the global economic slowdown caused by higher inflation, higher interest rates and geopolitical turmoil. Weak growth in the local and global consumer markets affected the group's sales, resulting in a decline in sales revenue of about 21% to 25% compared with the same period last year; and changes in customer orders and product mix led to a decline in the group's gross profit margin.
Despite dealing with the rapidly changing business environment, the Group will give priority to implementing stringent cost control measures, developing new businesses and markets, and developing new products and technologies to promote its horizontal business expansion and enhance its position as a leading supplier of materials solutions. The Group will also closely monitor the market situation and adjust its strategy and operations for upstream integration of its supply chain as necessary.