Zhitong Finance App News, Peng Shun International (06163) announced that the group is expected to obtain an unaudited comprehensive loss of about US$3 million in the year ending October 31, 2023, which is more than 100% higher than the loss attributable to the company's equity owners of about US$1.38 million in the same period in 2022.
According to the announcement, the expected loss is mainly due to a decrease of about US$13.2 million in revenue for this year compared to the previous year. This is mainly due to a sharp decrease in the number of completed bus orders delivered to Uzbekistan, the United States of America and Australia, leading to a decrease in revenue from sales of car bodies and kits; and a decrease in revenue from the sale of spare parts and related services. In view of this, the Group's gross profit for the year also decreased by approximately US$2.63 million compared to the previous year; net impairment loss provisions for trade and other receivables confirmed in the current year increased by approximately US$830,000 compared to the previous year. The increase is mainly due to increased uncertainty about the progress of repayment of other accounts receivable.
In addition, the impact of reduced earnings and gross profit and increased impairment losses on trade and other accounts receivable was offset by gains of about $1.2 million from changes in fair value of financial assets that are included in profit and loss at fair value. In contrast, changes in fair value of financial assets recorded as profit and loss at fair value confirmed a loss of about $100,000 in the previous year. Gains from changes in fair value of financial assets that include profit and loss at fair values are mainly due to income changes in fair value of embedded derivatives of convertible bonds. The Group has engaged independent professional valuers to value these convertible bonds to assess changes in fair value at the end of the year.