On July 11th, Gelunhui reported that the expected net income attributable to shareholders of the listed company for the first half of 2024 was a loss of RMB 0.566 billion to 0.992 billion, compared with a loss of RMB 0.242 billion in the same period last year; the expected net profit after deducting non-recurring gains and losses was a loss of RMB 0.618 billion to 1.044 billion, compared with a loss of RMB 0.305 billion in the same period last year; and the basic EPS was expected to be a loss of RMB 0.2430/share to 0.4259/share.
In RMB terms, the company expects sales in the first half of 2024 to be down about 14% from the first half of 2023, or a 16% decline when calculated in USD, reflecting the negative impact of price and sales volume declines as well as exchange rate fluctuations. The reason for the year-on-year decline in sales is that lower demand has affected sales volume and prices.
Compared with the first half of 2023, the company expects EBITDA and its profitability to decline year-on-year in the first half of 2024. However, the gross margin is expected to increase year-on-year in the first half of the year, mainly due to the positive impact of new inventory purchased at market prices. In addition, the company initiated a reform plan at the beginning of 2024 and began to implement multiple proactive measures aimed at improving business quality.