On January 26, Ge Longhui Co., Ltd. (301088.SZ) announced the 2023 annual results forecast. Net profit attributable to shareholders of listed companies during the reporting period was 81.21 million yuan to 90.45 million yuan, down 46% to 51% from the same period last year; net profit profit after deducting non-recurring profit and loss was 45.32 million yuan - 54.56 million yuan, down 57% to 64% from the same period last year.
The main reason for the same decline in the company's performance in 2023:1. During the reporting period, the company's sales revenue declined year on year due to adverse objective factors such as declining clothing consumption and late winter cooling across the country. At the same time, in order to meet changes in market demand, the company's overall gross margin decreased year on year. 2. The average storage age of the company's inventory has increased. Based on the principle of prudence, inventory price drop losses calculated according to the storage age structure have also increased accordingly, leading to a decline in operating profit. 3. The company's net profit after deducting non-recurring profit and loss is 45.32 million yuan to 54.56 million yuan, down 57% — 64% from the same period last year. The estimated impact of non-recurring profit and loss on the company's net profit is 35 million yuan to 38 million yuan. The company's non-recurring income mainly comes from financial management income from managing idle cash. The amount of non-recurring profit and loss for the same period last year was 41.38 million yuan.