On March 18, GLONGHUI | Xincheng Technology (00365.HK) announced that the company expects to record a loss attributable to the company owner of not more than HK$67,000,000 in 2023, while the loss attributable to the company owner in the previous year was HK$24,741,000.
The board of directors believes that the reasons for the relative increase in losses in 2023 compared to 2022 include (i) the Group's main business was affected by the market environment, and the gross profit contribution of the sector decreased; (ii) the Group's energy storage power plant business had a long industrial cycle, which was still in the growth stage, and the total initial investment amount was high, which in turn led to an increase in financing costs and depreciation of fixed assets, reflected in increased losses for the company's owners; (iii) administrative expenses increased due to adjustments in the company's business plan during the year; and (iv) there were many macroeconomic environmental uncertainties during the year, which affected the overall performance of the group.