Summary by Moomoo AI
On June 11, 2024, Digital China Group issued a profit warning, expecting a net loss of at least HKD 10 million for the fiscal year 2023/2024, compared to a net profit of approximately HKD 43.7 million for the fiscal year 2022/2023. The board of directors pointed out that the net loss was mainly due to intensified market competition resulting in a decline in revenue and gross margin of the distribution business and system integration solution business, as well as an increase in net impairment losses under the credit loss model item. In addition, other income decreased mainly because the government's "employment support scheme" subsidy was received in the previous fiscal year but not in this fiscal year. The company emphasized that this is a preliminary assessment, which has not been reviewed by the Audit Committee or the independent auditor. Actual financial performance may vary, and shareholders and potential investors are advised to pay attention to the performance announcement for the fiscal year 2023/2024.