On February 21, Ge Longhui Technology (02440.HK) announced that although revenue for the 2023 fiscal year increased by 34% to 38% compared with approximately RMB 324.0 million as of December 31, 2022, compared with the adjusted net profit of approximately RMB 51.0 million in the previous year (measured by non-Hong Kong financial reporting standards), the Group expects a decrease of 27% to 37% in fiscal year 2023.
The decline in expected profit for fiscal year 2023 is mainly due to (i) a decline in gross margin due to increased market competition and uncertainty in macroeconomic conditions; and (ii) an increase in management expenses due to increased company compliance costs since listing on the stock exchange in December 2022.