Gelonghui, August 18, 丨 Tiancai Holdings (03882.HK) announced that the Group expects to record a net loss of no more than HK$50 million in the six months ending June 30, 2023, compared with a net loss of about HK$2 million for the same period in 2022.
The Board believes that the expected loss in mid-2023 is mainly due to the following reasons (among others): (i) global demand for consumer electronics products continued to weaken in the first half of 2023 due to global anti-globalization, high inflation and high interest rates in the US and the EU. The Group's revenue from the camera products and related accessories business in mid-2023 is therefore expected to decrease by about HK$126 million (a decrease of about 47.5%) compared to mid-2022; (ii) due to the decrease in revenue disclosed above, the Group is expected to come from camera products and related accessories in mid-2023 The gross profit of the business was drastically reduced by about HK$26,000,000 (a decrease of about 59.2%) compared to mid-2022, while sales and distribution expenses and administrative expenses are mostly fixed and will not decrease in line with revenue; and (iii) retail business through artificial intelligence vending machines is still in the early stages of development, and a net loss of approximately HK$13 million is expected to be recorded.