Gelonghui Machinery (00118.HK) announced on March 6, that compared with the consolidated profit of approximately HK$18.837 million for the year ended 31 December 2022, the Group is expected to record an unaudited consolidated loss of no more than HK$60 million for the year ended 31 December 2023. The main reasons for the change from profit to loss are as follows:
1. The sale of the two houses was a non-wholly-owned subsidiary between the companies, the entire share capital of Bunge Industrial Co., Ltd. and all shares of Shenzhen Bungie Circuit Board Co., Ltd. before the sale was settled. After deducting the relevant legal costs and fees, an unrecurrent loss of approximately HK$50,000,000 was recorded. and
2. The printed circuit board trade business is expected to become difficult due to weak markets in the office automation equipment, consumer electronics and automotive industries. Global companies are developing new suppliers outside of China, mainly in Southeast Asia, increasing price competition with our peers and putting pressure on us to maintain product gross margins. An impairment loss of approximately HK$29 million in goodwill book value was confirmed in the consolidated income statement for the year ended 31 December 2023 based on the intense market environment.