Gelonghui, January 29丨Liantai Holdings (00311.HK) announced that losses attributable to the company owner for the year ended December 31, 2023 are expected to be about 6 million US dollars to 8 million US dollars, while the year ended 31 December 2022 recorded a re-listed profit attributable to the company owner of about 9.9 million US dollars.
The expected change in profit to loss is mainly due to: 1. The supply chain has been disrupted in the past few years due to the COVID-19 pandemic. Most brand owners are concerned about supply chain disruptions, so they actively raised inventory levels during the pandemic, leading to an oversupply of inventory in the post-COVID-19 era.
As a result, the Group's revenue fell by about 20.3% from approximately US$859 million for the year ended 31 December 2022 to approximately US$685 million for the year ended 31 December 2023. Due to the decline in revenue, the operating efficiency of some of the Group's plants did not reach the design level, so losses were inevitable.
2. As interest rates remain high, the Group's financial expenses increased by about 55.6% from approximately US$9 million for the year ended 31 December 2022 to approximately US$14 million for the year ended 31 December 2023.