On March 11, Ge Longhui | Jiuyuan Group (00827.HK) announced that the company expects the group to record a net loss of approximately RMB 152 million for the year ended December 31, 2023, a decrease of approximately RMB 154 million compared to the net profit of the previous year of approximately RMB 202 million.
The main reason for the 2023 net loss was due to a decline in the gross margin of the Group's products. The rise in natural gas prices and the average sales price of chemical and fertilizer products in 2023 fell compared to last year, causing the gross margin of the Group's products to fall. In 2023, the average gross margin of the Group's products is expected to be around 10.9%, compared to the average gross margin of about 24.7% last year.