On March 22, GLONGHUI Co., Ltd. (03882.HK) issued an announcement. The board of directors (i) expects the 2023 fiscal year to decrease by about 23% compared with revenue for the year ended 31 December 2022; (ii) it is expected to record a net loss of no more than HK$130 million in the 2023 fiscal year, while the net loss for the same period in 2022 is approximately HK$31 million.
The Board believes that the above projected revenue reduction and net loss for fiscal year 2023 is mainly due to the following reasons: 1. In 2023, global demand for consumer electronics products was still weak. In the context of increased inflation, people's daily expenses have increased dramatically, and purchases of consumer electronics have declined. 2. Some customers continue to leave inventory, which has a great impact on the Group's new orders. 3. Despite the lifting of epidemic prevention measures in early 2023, communication with overseas customers has become easier, and new projects have gained more. However, due to the poor global environment, most of the projects that were originally scheduled to begin mass production in the fourth quarter of 2023 were postponed to the second quarter of 2024, and these projects failed to contribute to the Group's 2023 performance. 4. Impair property, plant and equipment, intangible assets and right-of-use assets. 5. The retail business of selling food and beverages through artificial intelligence vending machines is still in the early stages of development. In 2023, the Group will be responsible for promotion and operating expenses.