Gelonghui November 2 | Yibang Bank Holdings (00599.HK) announced that although earnings were only slightly reduced by 8.5% compared to the same period last year, the company expects profit before income tax to be reduced by about 45% during the six-month period ending September 30, 2023.
The company acknowledged that high operating expenses had a significant impact on the company's financial performance, which posed a challenge. Depreciation of usufruct assets is a one-time measure aimed at reducing the operating expenses of the company's showroom over the next three years. This decision is to deal with the uncertainty of current market conditions.
The company's standard operating expenses include ongoing depreciation and maintenance of property, plant and equipment. In order to cope with the current market conditions, the company had to take cost-saving measures and reduce the operating costs of the Chinese business.
The Company wishes to state that it is determined to seriously address these challenges, seek to restore profitability, and create sustainable long-term value for all stakeholders. As we work to resolve these issues, we ask for your continued support and patience during this period of adjustment.