On March 11, GLONGHUI | Shenguan Holdings (00829.HK) announced that for the year ended December 31, 2023, the Group is expected to record profits attributable to company owners of about RMB 30 million to approximately RMB 35 million this year, while in 2022, profit attributable to company owners is approximately RMB 23.6 million.
The board of directors believes that in the first half of 2023, the Group will carry out large-scale product trial production and equipment transformation to develop new products and expand production capacity, and the production line needs to be tested for quality results. The raw materials, accessories and energy consumption of trial production are all higher than normal production, which in turn will increase the average production unit cost. These negative factors led to a decline in the Group's profit in the first half of 2023 compared to the first half of 2022. However, in the second half of 2023, with the development of new products and the expansion of production capacity completed one after another, the Group's process technology became more mature, expanding the share of medium and large caliber products and entering the high-end product market, gradually meeting the needs of the meat enema industry to adjust the product structure. Furthermore, while expanding casings production capacity, the company implemented standardization of equipment reengineering, laying a good foundation for improving production efficiency and reducing production costs and equipment maintenance costs. The performance in the second half of 2023 improved markedly compared to the first half of 2023.