Changmao Biotech (00954) issued an announcement. The Group expects to acquire ownership for the year ended December 31, 2023...
According to the Zhitong Finance App, Changmao Biotech (00954) announced that the Group expects to obtain a comprehensive net loss attributable to the company's shareholders for the year ended December 31, 2023. The amount is between RMB 85 million and RMB 95 million. The consolidated net profit attributable to the company's shareholders for the year ended December 31, 2022 was approximately RMB 81.423 million.
The board of directors of the company believes that the main factors affecting the Group's financial performance in 2023 are as follows: (1) sales revenue and gross margin declined due to falling product sales prices and weakening export demand; (2) the Group's new factory in Dalian began operation in the fourth quarter of 2022, and its production line is still being adjusted to achieve target output and costs. There is currently no profit, which has a negative impact on the Group's overall gross margin. The board of directors expects that after the adjustments, the production line at the Dalian plant will reach the planned output and cost, and the operating conditions will gradually improve, and eventually become a growth point for the Group; and (3) Changmao Biotech Lianyungang Co., Ltd., a subsidiary of the group, will lose money in 2023 due to unsatisfactory operation and falling product sales prices. Therefore, the Group re-assessed the book value of Lianyungang Changmao's projects, properties, machinery and equipment and deferred tax assets under construction. According to the Board's latest assessment, the Group expects to accrue impairment provisions and offset deferred tax assets for projects, properties, machinery and equipment under construction, totaling RMB 55 million to RMB 65 million (2022: none). The Board wishes to emphasize that, according to the Hong Kong Financial Reporting Standards, impairment losses and the write-off of deferred tax assets are a non-cash accounting treatment and have no impact on the Group's operating cash flow.