Zhitong Financial APP News, Youji Holdings (01948) issued an announcement that the group expects to achieve a significant decline in profit attributable to group owners for the six months ended June 30, 2023, a decrease of no less than 60% compared with the six months ended June 30, 2022.
The Board expects the Group to achieve a decrease in profit attributable to owners for the six months ended 30 June 2023, mainly due to the following reasons:
(1) the market has been in the doldrums since the second half of 2022, and this trend continues into the first half of 2023. Affected by the decline in consumer demand in various markets, enterprises generally hold a cautious wait-and-see attitude towards business development and marketing promotion, waiting for the market to rebuild confidence.
(2) the Group has implemented a more prudent credit assessment policy in accepting customers and extending customer relationships. At the same time, the Group has streamlined and optimized its customer structure, which has led to a decline in the size of the Group's business in the short term. however, this will certainly help to enhance the operational efficiency and future profitability of the Group.
Despite many challenges, the Group maintained strong cash flow for the six months ended June 30, 2023, demonstrating the Group's financial health and operational soundness.
In addition, the Group expects the rapid development of generative artificial intelligence technology (AIGC) in 2023. The Group will actively combine the application scenarios of Internet advertising and live e-commerce, and make efforts from the aspects of talent recruitment, data application, technology adoption and cooperation opportunities to meet the relevant technological and industry changes. In order to continue to consolidate the Group's leading position in the Internet marketing industry.