On May 16, GLONGHUI | Bauhaus International (00483.HK) announced that the Group is expected to record net profit of about HK$4.6 million to HK$13.8 million (2023: HK$46 million) for the year ending March 31, 2024, a sharp drop of about 70% to 90%.
The sharp drop in net profit was mainly due to the combined effects of (i) a reduction in net inventory provision refunds from HK$16 million to HK$1.2 million; (ii) a reduction in net repayment of lease liabilities from HK$6.5 million to HK$0; (iii) a reduction in government anti-epidemic subsidies from HK$4.185 million to HK$0; and (iv) increases in rent and operating expenses after the end of the pandemic.