On March 11, GLONGHUI | Baguio Green Group (01397.HK) announced that for the year ended December 31, 2023, the Group expects to record a net profit of approximately HK$4,800-51 million this year. Excluding non-operating subsidies from the Hong Kong Special Administrative Region Government, the Group expects to record a net profit of about HK$4620-49.2 million this year, an increase of about 41.5% to 50.4% over 2022.
According to the announcement, the sharp increase in net profit was mainly due to the following factors: (i) the Hong Kong garbage levy scheme brought growth impetus to the Group's recycling and green technology business; (ii) successful acquisition of new cleaning service contracts from the government, semi-official agencies and private institutions; and (iii) efficiency improvements brought about by the scale effect.