On March 26, GLONGHUI | Ocean Services (06677.HK) announced that for the year ended December 31, 2023, the company's revenue decreased by about 6% compared to 2022 to RMB 3,133.2 million, mainly due to the Group's active adjustments to the value-added business of non-owners with inadequate repayment guarantees.
Profit attributable to company owners decreased by about 44% compared to 2022 to RMB 42.1 million. The decrease in profit attributable to company owners is mainly due to (i) major changes in supply and demand in the real estate market, which lengthened the settlement cycle of related businesses. Due to the principle of prudence, further accrual of impairment provisions for trade receivables were made (even though net impairment losses on financial assets were reduced, which was mainly due to a reduction in impairment provisions for other accounts receivable); (ii) non-owners' value-added businesses with inadequate payment guarantees were actively adjusted after comprehensive consideration of receivables repayment; and (iii) mainly affected by the overall economic situation and the real estate market. Some business developments fell short of expectations, leading to a decline in the gross margin of related businesses and a decline in the performance of joint ventures. The Board is pleased to recommend that a final dividend of RMB 0.0144 per share be paid in cash.