On March 12, GLONGHUI LOGISTICS (01442.HK) issued an announcement. Compared with the profit attributable to company owners about RM36,000,000 in the previous year, the profit attributable to company owners is expected to decrease by about 45% to 55% for the year ended December 31, 2023.
The expected decrease in profit attributable to company owners is mainly due to (i) the increase in the cost of sold services and goods (especially depreciation and employee costs), which led to a decrease in the Group's gross profit and gross margin for the current year despite a slight increase in the Group's earnings compared to the previous year; and (ii) the increase in income tax expenses due to the expiration of certain tax benefits provided by the Malaysian Investment Development Board and the increase in deferred tax liabilities during the year.