On January 29, Ge Longhui (002190.SZ) announced that net profit is expected to be 13 million yuan to 19 million yuan in 2023, down 77.75% to 67.48% from the same period last year, after deducting non-net profit of 7 million yuan to 14 million yuan, down 81.89% to 63.79% from the same period last year.
In the aviation parts business, orders were significantly delayed and declined compared to expectations due to reduced demand released by important customers during the reporting period and increased competition, which led to a sharp drop in order prices. At the same time, the construction of the company's Xindu aviation production line was completely completed and upgraded during the current period, increasing fixed costs. Due to the above reasons, the gross profit contribution of the aviation parts business in the current period was drastically reduced compared to the same period last year. The subsidiary integrated Jiwen Mold orders declined, and production capacity was unsaturated, leading to an increase in shared fixed costs and a sharp year-on-year decline in profits.