According to the Zhitong Finance App, Xiushang Times Holdings (01849) issued an announcement. It is expected that the Group will have a net loss of approximately SGD 200,000 for the period ending December 31, 2023, and a net profit of approximately SGD 2.1 million for the period ending December 31, 2022.
According to the announcement, the decline was mainly due to the following reasons: the profit of the subsidiary Majestic State International Limited decreased by about 81% from about SGD 1.6 million for the period ended December 31, 2022 to about SGD 300,000 for the period ended December 31, 2023. The decline in profit stemmed from sales revenue falling 73% from approximately SGD 11.5 million for the period ended 31 December 2022 to approximately SGD 3.1 million for the period ended 31 December 2023. The decline in sales revenue can be attributed to the current challenging macroeconomic environment in China.
The gross profit of the Group's Creative and Technical Services business segment was reduced from approximately SGD 1.9 million for the period ended 31 December 2022 to approximately SGD 700,000 for the period ended 31 December 2023. The decrease in gross profit was due to sales revenue from creative and technical services falling by approximately SGD 2.4 million for the period ended 31 December 2022 to approximately SGD 1.2 million for the period ended 31 December 2023. The decline in revenue from sales of creative and technical services can be attributed to customers generally focusing their marketing activities on search engine marketing services. Sales revenue from search engine marketing services increased 8.5% from approximately SGD 9.2 million for the period ended 31 December 2022 to approximately SGD 10 million for the period ended 31 December 2023.