Gelonghui Home Control (01747.HK) announced on March 21, that the company expects revenue to be reduced by about 20% to 25% for the year ending December 31, 2023. The year may record losses attributable to company owners, while profit attributable to company owners was recorded in the same period of 2022. Revenue and profit attributable to company owners for the same period in 2022 were approximately $126.6 million and $4.6 million, respectively.
The Board believes that this decline in revenue was mainly due to the slower than expected global economic recovery, which led to higher customer inventories. The decrease in profit accruing to company owners during the period was mainly due to a decrease in gross profit due to changes in the product portfolio and an increase in other expenses. In addition, non-recurring restructuring and dismissal costs of about $2.5 million were incurred to optimize the cost structure to maintain the Group's competitiveness in the current business environment, which increased other expenses. Excluding non-recurring restructuring and severance costs, the adjusted profit attributable to company owners is expected to be approximately $0.7 million to $1.1 million for the year.
Although losses attributable to company owners are expected to be recorded during the year, the board of directors wishes to emphasize that the Group's performance in the second half of 2023 improved compared to the first half of 2023, as losses attributable to company owners were reduced by about 90% to 95%.