Bawang Group (01338) announced that the Group expects to obtain net profit in the range of about RMB 14 million for the 10 months ending October 31, 2023. Compared to the same period last year, it achieved an unaudited net loss of about RMB 25.3 million.
According to the announcement, the situation of turning a loss into a profit in the first 10 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, as well as a decrease in depreciation, indirect manufacturing costs, and labor costs. Thus, compared with the net loss for the same period last year, the Group expects to achieve net profit in the first 10 months of 2023.