Gelonghui, April 12, 丨 Guangnan (Group) (01203.HK) announced that according to the company's preliminary review of the Group's unaudited comprehensive management accounts for the three months ended March 31, 2024, based on the unaudited comprehensive profit attributable to the company's equity holders of HK$16.37 million for the three months ending March 31, 2023, it is expected that the unaudited comprehensive profit attributable to the company's equity holders will be reduced by about 41%.
The decline in unaudited comprehensive profit estimates attributable to the company's equity holders is mainly due to the following factors: (i) intense competition in the tinplate industry, which led to a year-on-year decline in the sales volume and price of the Group's tinplate products; and (ii) the situation in the pig breeding industry in mainland China is complex and serious, and pig prices continue to operate at a low level, leading to increased losses of associated companies operating in live pig breeding and sales.
However, thanks to the Group's slaughter business layout in the Greater Bay Area, strengthening and improving the slaughter business, the year-on-year increase in live pig slaughter volume in the first quarter of 2024, combined with the stability of the food wholesale and retail business, offset some of the effects of this decline in profit.