Gelonghui, Feb. 5 | Guangnan (Group) (01203.HK) announced that based on the audited consolidated profit of HK$135 million attributable to the company's equity holders in 2022, it is expected that the unaudited consolidated profit attributable to the company's equity holders will be reduced by about 53% to no less than HK$64 million for the year ended 31 December 2023.
The decline in profit expectations is mainly due to the following factors: (i) the pig industry situation in mainland China is complex and serious. Live pig prices continued to operate at a low level in 2023. In addition, the epidemic of swine disease was severe in some regions of the country, and associated companies involved in live pig breeding and sales were affected, leading to an increase in epidemic prevention and operating costs and an increase in operating losses; and (ii) intense competition in the tinplate industry, the sales price of the Group's tinplate products declined year on year, leading to a decrease in the profit of the tinplate business. However, thanks to the Group's slaughter business layout in the Greater Bay Area, strengthening and improving the slaughter business, live pig slaughter volume rose sharply in 2023, forming a new profit growth point; in addition, the food wholesale and retail business continued to expand this year, offsetting part of the impact of this decline in profit.