Hongan Group (01222) announced that it expects the Group to obtain a profit of no more than HK$130 million attributable to parent company equity holders in the six months ending September 30, 2023, and losses attributable to parent company equity holders of about HK$23.6 million in the same period last year.
According to the announcement, turning a loss into a profit was mainly due to the increase in the performance of the joint venture; and the increase in sales and gross profit from the production and sale of pharmaceuticals and health food, which was partly offset by a decrease in gross profit due to a reduction in delivery of property projects; and an increase in financing costs due to increased interest rates. This was compared with the same period in 2022 during the review period.