Zhitong Financial APP News, Bishengyuan (00926) issued an announcement that the group's revenue for the year ended December 31, 2023 is expected to decrease by about 30% to 40% compared with 2022. And the net loss attributable to shareholders is likely to be approximately RMB 238 million to RMB 278 million for the year ended December 31, 2023 (these estimated amounts do not take into account long-term asset impairment tests and changes in the fair value of equity in unlisted companies invested by the Group. Possible impairment loss).
According to the announcement, the expansion of the expected net loss in 2023 compared with the net loss attributed to shareholders in 2022 is mainly due to the strategic adjustment of the business operation model and employee structure in order to achieve a shared incentive model, inviting core employees to jointly form new business entities, and using these new business entities to provide OTC, e-commerce, marketing and other related business operation services to the group. Therefore, the group and the relevant employees agreed to terminate the labor contract. According to the relevant laws and regulations, the group will have to pay an one-time severance compensation of about 50 million yuan to 60 million yuan to the relevant employees. And affected by market changes and price competition, the revenue of functional health tea and slimming drugs of the group's main products for the year ending December 31, 2023 is expected to decline by about 15% to 25% compared with the same period last year. Revenue from other health foods and medicines for the year ended December 31, 2023 is expected to decline by about 60% to 70% year-on-year.