On March 6, CWT INT'L (00521.HK) announced that the company expects to record profit after tax of no less than HK$70 million for the year ending December 31, 2023, a decrease of about 73% compared to the previous year's profit of HK$255 million after tax.
The expected decline in profit after tax is mainly due to a combination of the following reasons: (1) the decline in profit after tax in the logistics services division. The board believes that it is mainly due to the decline in profit and logistics business, which is mainly due to market conditions such as weak purchasing power in the European market, weak demand, rising labor costs, and low market prices due to severe competition; (2) the fair value loss of the unlisted equity investment of a limited partnership owned by the group participating in US real estate investment is measured at fair value; (3) the improved performance of the commodity trade division is mainly due to a mixture of favorable factors , positive weight and test differences, and the contribution of an increase in the number of profit transactions; and (4) A provision was made in the settlement agreement reached in the previous fiscal year, and there is no need for further consideration of this provision in that year.