Gelonghui, Feb. 8: Ruixin International Group (00724.HK) announced that the Group is expected to report an estimated loss of around HK$72 million for the year ended December 31, 2023 (“reporting period”), compared with a loss of approximately HK$58.2 million for the same period last year.
The estimated increase in loss estimates during the reporting period is mainly due (among others) to an increase in operating losses and an increase in interest accrued expenses. The increase in operating losses during the reporting period was mainly due (i) to a decrease in revenue, mainly due to the rapid development of the industry and the weakness of the world economic environment, which led to the loss of orders due to the Group's products not meeting the new specifications of such customers; (ii) the conversion of gross profit to gross loss mainly due to inventory impairment confirmed during the reporting period; and (iii) one-time expenses in terms of administrative expenses to prevent disclosure of the Group's expertise to competitors.