On March 20, GLONGHUI | Tongda Hongtai (02363.HK) announced that for the year ended December 31, 2023, the company's revenue for the year ended 31 December 2023 is expected to be between about HK$90 million and HK$93 million, while revenue for the same period in 2022 is about HK$15,0545 million; net loss is expected to be between HK$35 million and HK$40 million, compared to a net loss of approximately HK$23,1423 million for the same period in 2022.
According to the announcement, the Group's expected revenue reduction and expected net loss reduction in the current year is mainly due to the fact that the operating restructuring implemented by the Group in 2022 continued in the current year, and the Group re-evaluated projects to improve operating cash flow, thereby reducing the number of sales orders received. Furthermore, the Group's sales orders and production were adversely affected by adverse external challenges, including soaring global inflation, rising employee costs, continued fluctuations in material prices due to supply chain instability, semiconductor supply shortages, and continued intensification of market competition, all putting pressure on the Group's sales orders. The Group expects the reduction in net loss due to the Group's successful implementation of the ongoing restructuring of operations described above.