Veeko Int'l (01173.HK) announced on June 14 that it is expected to incur a post-tax loss of approximately HKD 38 million to HKD 42 million for the fiscal year ending on March 31, 2024. This compares to a post-tax surplus of approximately HKD 5,027,000 for the previous year.
The expected loss for this fiscal year is mainly due to the combined impact of the following factors: (i) a significant increase in financial expenses compared to the previous year of approximately HKD 17,569,000 due to the rise in bank borrowing rates; (ii) a decrease in fair value of investment properties from approximately HKD 19,881,000 in the previous year to approximately HKD 5,324,000 this year; (iii) the group did not receive any subsidies or assistance related to the COVID-19 epidemic in 2019 this year, while it received such subsidies and assistance amounting to approximately HKD 16,244,000 in the previous year; and (iv) although the gross margin of the fashion business increased compared to the previous year, the gross margin of the cosmetic business decreased, and the proportion of the cosmetic business's revenue to the overall revenue was larger than that of the fashion business, resulting in an overall decrease in gross margin compared to the previous year.
Due to the continued high bank borrowing rates, two executive directors, Mr. Zheng Zhongwen and Ms. Lin Yusen, have provided financial support to the group by offering a revolving loan of up to HKD 350 million to repay part of the group's bank credit loans, to reduce future interest expenses and to provide working capital for the group's normal business operations.
