Volcano Yidong International Holdings (01715) surged more than 25%. As of press release, it had risen 25% to HK$0.03, with a turnover of HK$1.67 million.
The Zhitong Finance App learned that Volcano Yidong International Holdings (01715) surged more than 25%. As of press release, it had risen 25% to HK$0.03, with a turnover of HK$1.67 million.
According to the news, Volcanic Yidong International Holdings recently announced that according to the Group's unaudited comprehensive management accounts for the year ended December 31, 2023 and the information currently available to the company, the Group expects to obtain a net loss of approximately RMB 39 million after tax in the year ending December 31, 2023, while the net loss after tax will be approximately RMB 43.6 million in the same period of 2022.
The announcement said that in the year ended December 31, 2023, consumer confidence in China has not fully recovered due to the still highly uncertain global economic situation. Interest rates remain high, increasing the Group's financing costs. Weak consumer confidence and high interest rates adversely affected the Group's financial results. The expected net loss for the year ended December 31, 2023 is due to a decrease in gross margin from about 43.6% in 2022 to about 29.0% in 2023 due to a decline in sales, changes in product portfolio, increased trade receivables and inventory impairment losses, and increased financing costs due to increased loans to finance the Group's business operations and rising interest rates.