Volcano Spring International Holdings Limited (01715.HK) announced that the group expects to record a net loss after tax of no less than approximately RMB 23 million in the six months ended June 30, 2024, while in the same period of 2023, it recorded a net loss after tax of approximately RMB 20.6 million.
In the six months ended June 30, 2024, the group continued to be affected by deteriorating economic growth, high inflation rates, and interest rates, as well as cautious consumer spending. These factors have had an adverse impact on the group's financial performance. The expected increase in net loss for the six months ended June 30, 2024 is mainly attributable to: (i) a decrease in income of approximately RMB 51.7 million, or about 40%, from the six months ended June 30, 2023; and (ii) an increase in impairment losses on financial assets of approximately RMB 3.2 million, partially offset by a reduction in selling and distribution expenses.