Zhitong Financial APP News, Wanma Holdings (06928) released interim results for the six months ended June 30, 2023, with earnings of about S $7.9 million, an increase of 83.9% over the same period last year; losses attributable to company owners were S $8.018 million, an increase of 1066.06% over the same period last year; and a loss of S $1.78 per share.
The main reasons for the increase in net losses are as follows:
(1) the increase in the cost of employee benefits from about S $1.425 million in the corresponding period to about S $2.03 million in the current period is mainly due to the increase in management remuneration in the current period to encourage them to improve the business condition of the Group.
(2) the decrease in gross profit in the current period is mainly due to the increase in vehicle sales, but the increase in the logistics cost of imported vehicles from overseas leads to a decrease in gross profit margin; and
(3) the acquisition of a 49 per cent stake in the target group in 2022 resulted in an impairment loss on the investment of the associated company of approximately S $6.421 million.