On March 8, Ge Longhui | Reading Lang (02385.HK) announced that the company is expected to record: (i) The comprehensive loss attributable to company owners for the year ended 31 December 2023 is approximately RMB 68 million to RMB 78 million, while the comprehensive profit attributable to company owners for the year ended 31 December 2022 is approximately RMB 5.2 million.
This expected loss is mainly due to: (a) the domestic economy was affected by the international environment, and product sales were negatively affected to a certain extent; (b) the double reduction policy and the post-pandemic era, some consumers still took a cautious attitude towards consumption, leading to a decrease in market demand, making sales of student personal tablets, wearable products and digital smart campus solution products lower than expected; (c) financial assets disclosed in the company's 2022 annual report were affected by changes in value during the reporting year. For the year ended December 31, 2023, financial assets included in profit and loss were confirmed at fair value The fair value change loss was approximately RMB 19.1 million; and (d) the increase in R&D expenditure for the year ended 31 December 2023 was due to increased competition in the industry, which led to the homogenization of products provided by various suppliers. As a result, the company increased its investment in new product development during the year to enhance its long-term competitiveness.
The adjusted net loss for the year ended 31 December 2023 was approximately RMB 48 million to RMB 58 million, while the adjusted net profit for the year ended 31 December 2022 was approximately RMB 6.3 million. These recorded losses were mainly due to the above reasons.