Shenguan Holdings (00829) surged more than 10% after profit. As of press release, it rose 10.71% to HK$0.31, with a turnover of HK$1.64 million.
The Zhitong Finance App learned that Shenguan Holdings (00829) surged more than 10% after profit. As of press release, it had risen 10.71% to HK$0.31, with a turnover of HK$1.64 million.
According to the news, Shenguan Holdings announced that it is expected that the Group will obtain a profit attributable to the company owner of about RMB 30 million to approximately RMB 35 million for the year ended December 31, 2023, and the profit attributable to the company owner of approximately RMB 23.6 million for the year ended December 31, 2022.
According to the announcement, in the first half of 2023, the Group carried out large-scale product trial production and equipment transformation in order to develop new products and expand production capacity, and the production line needed trial production to test quality results. The raw materials, accessories and energy consumption of trial production were all higher than normal production, thereby increasing 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.