Jinwu Financial News | Jingxi International (02339) announced that it is expected that in 2023, the Group will record losses attributable to company owners between HK$40 million and HK$60 million, a further increase in losses compared to losses attributable to company owners of HK$4.9 million in the same period last year.
The increase in expected losses for the year is mainly due to the following factors:
1. Sales revenue from plants in Poland accounted for about two-thirds of the Group's revenue this year, and prices of raw materials, labor and energy all soared sharply in Poland due to the impact of a high inflationary environment. Coupled with the exchange factors described in point 2 below, the Group's overall gross margin and gross profit recorded a significant decline this year.
2. The Group's business transactions involve a variety of currencies, including USD, EUR, PLN, CZK, GBP, HKD, etc., and the Group's sales are mainly traded in USD and EUR. In the current year, the US dollar depreciated by about 10%, 5% and 1% against PLN, British pound and Czech krona, respectively, while the euro depreciated by about 7% and 2% against PLN and GBP, respectively. The exchange rate of USD/EUR against the listed values of the Group's three major plants declined, resulting in exchange losses this year, while the Group had an exchange profit of HK$17 million in the same period last year.