On November 17, Gelonghui Group (01338.HK) announced that compared with an unaudited net loss of about RMB 25.3 million in the same period last year, the Group expects to record a net profit range of about RMB 14 million for the ten months ending October 31, 2023 (the first ten months of 20023).
The situation of turning a loss into a profit in the first ten months of 2023 is consistent with the reason for the improvement in financial performance described in the company's interim report for the six months ending June 30, 2023, that is, the Group's gross margin rose sharply, mainly due to a sharp drop in raw material prices during the period, and the reduction in depreciation, indirect manufacturing costs, and labor costs. Thus, compared with the net loss in the same period last year, the Group expects to achieve net profit in the first ten months of 2023.