Zoy Home Furnishing (603709.SH) announced on July 10th that, according to preliminary calculations by the finance department, it is expected to achieve a net income attributable to the owner of the parent company of 2.412 million yuan to 3.5058 million yuan in the first half of 2024. Compared with the same period last year, it will decrease by 14.1992 million yuan to 15.293 million yuan, a year-on-year decrease of 80.20% to 86.38%. It is expected to achieve a deducted non-recurring gain or loss attributable to the owner of the parent company of 3.2265 million yuan to 4.6898 million yuan in the first half of 2024. Compared with the same period last year, it will decrease by 11.61 million yuan to 13.0733 million yuan, a year-on-year decrease of 71.23% to 80.21%.
In order to enhance the competitiveness and market share of the company's own brands, the company is increasing its investment in cross-border e-commerce and domestic sales, and increasing promotional efforts, especially in the investment in advertising expenses, which has significantly increased operating costs and related expenses. The loss of the Mexican factory is mainly due to: first, the high prices of local raw materials in Mexico and the imperfect supply chain; second, the significant increase in fixed cost expenses caused by the low factory operating efficiency brought by production capacity adjustment.