Jinwu Financial News | Jungao Holdings (08035) issued a profit warning. It expects to record losses attributable to company owners in the nine months ending September 30, 2023, ranging from about $13 million (HK$, same below) to about $13.5 million, with a profit of about $7.1 million for the same period last year.
Losses were mainly due to the impact of the COVID-19 pandemic and the economic downturn, and the recovery in freight volume was slower than expected, leading to a decrease in freight volume and revenue for air freight and shipping agency services; a decrease in gross profit and a decline in gross margin for logistics and warehousing services; a decrease in the number of orders from several major customers; loss of life insurance policy surrender; and increased financing costs due to increased bank loan interest rates, and increased interest expenses from major shareholder loans. There was no such situation in the nine months ending September 30, 2022.