On August 5th, Gelunhui announced that Xixiangfeng Group (02473.HK) is expected to generate revenue of approximately RMB 650 million in the mid-year of 2024, compared with the revenue of approximately RMB 60.1 million in the six months ending on June 30, 2023. This is mainly due to the group's stable operation, deepened sales network, and improved sales capabilities during the mid-year of 2024.
Compared with the company's expected profit attributable to owners of the company of approximately RMB 62.4 million in the middle of 2023, the group's expected profit attributable to owners of the company will not be less than RMB 19.0 million in the mid-year of 2024, which will decrease. The main reason is that the company's profit increased by approximately RMB 46.3 million due to the fair value change of redeemable ordinary shares with redemption features in the middle of 2023, and all of these shares have been converted into ordinary shares after the company's listing in November 2023. Therefore, there will be no fair value change factor of redeemable ordinary shares with redemption features affecting 2024 mid-year results, and the option fees generated by the stock purchase plan prior to the group's first public offering will offset some profits in the mid-year of 2024. The fair value change of redeemable ordinary shares with redemption features and the expenses generated by the stock purchase plan prior to the group's first public offering are of non-cash nature and have no impact on the group's operating cash flow.