Gelonghui, March 20 | China Baiyin Group (00815.HK) announced that compared with the net loss attributable to company owners of about RMB 120.8 million in the previous year, the company expects to record net profit attributable to company owners in fiscal year 2023 of RMB 10 million to RMB 25 million.
The expected year-on-year change of loss to profit is mainly due to the following factors: (i) As far as the Group's manufacturing business division is concerned, the silver electrolysis production line and sponge palladium production line have been put into operation on a commercial scale since June and August 2022, and the foreign sales amount of silver ingots in fiscal year 2023 is significantly higher than in fiscal year 2022. Furthermore, local government subsidies based on production value reduced the cost of sales per unit slightly. As a result of the above reasons, the segment recorded significant segmented profit in fiscal year 2023; and (ii) in terms of the Group's termination of operations, the loss in fiscal year 2022 was mainly due to the confirmation of non-recurring impairment losses of approximately RMB 57.7 million in certain intangible assets in fiscal year 2022, and no impairment loss on such intangible assets was confirmed in fiscal year 2023.
The above factors were partially offset by the following adverse factors: (iii) in the case of the Group's new jewelry retail business division (operated by Golden Cat Silver Cat Group Limited (stock code: 1815), a non-wholly-owned subsidiary of the company), although sales in fiscal year 2023 increased compared to fiscal year 2022, this increase was mainly due to increased sales of gold products, and the gross margin of gold products was lower than that of other jewelry products, which led to a decline in the overall gross margin of the division, which led to a segment loss in fiscal year 2023; and (iv) for the Group's fresh food retail business As far as the division (operated by Jinmao and Silver Cat), the agriculture and animal husbandry S2B2C platform is still in the consolidation stage, focusing on optimizing the cooperative store network, enriching product types, and adjusting business strategies. Furthermore, pig prices in mainland China were generally lower in fiscal year 2023 than in fiscal year 2022, leading to a decrease in treasurer's desire to trade, thereby reducing pig trading volume. As a result of the above, sales in FY2023 were significantly lower than in FY2022, and sales costs and other related costs and expenses were significantly reduced accordingly. Overall, due to the current state of development, the division has not yet started generating net profit in fiscal year 2023.