On March 4, GLONGHUI | Baidley Holdings (06909.HK) announced that the Group expects the profit attributable to the company owner to be reduced by about 70% compared to the profit attributable to the company owner of the company owner for the year ended December 31, 2022, of approximately RMB 171.5 million.
The expected decrease in group profit attributable to company owners is mainly due to a decrease in gross profit and gross margin for the year compared to 2022, as well as an increase in operating expenses due to an increase in business volume during the year. The Group's revenue from automobile sales and after-sales services grew steadily during the year. However, as the macroeconomy and consumption power of mainland China did not fully recover as expected, the average sales price and gross margin of automobile sales declined during the year, leading to a decline in the Group's operating performance in the year compared to 2022.