Gelonghui, March 8, 丨 Hengdeli (03389.HK) announced that according to the Group's management's preliminary review of the Group's unaudited comprehensive management accounts for the financial year ended December 31, 2023 (“review year”) and currently available data, it is expected that the profit attributable to the Group's shareholders in the year under review will turn a loss into a profit of approximately RMB 33.8 million, while the loss attributable to the company's shareholders for the financial year ended December 31, 2022 is approximately RMB 8.022 million.
According to currently available data, the expected change of profit to loss to profit is mainly due to (i) an increase in gross profit and gross margin due to fluctuations in commodity trade prices; and (ii) a sharp drop in inventory provisions and operating expenses of the watch business due to the termination of the watch business.