Win Hanverky Group (03322) announced that the group is expected to incur a post-tax loss of approximately 85 million after taxes in the first half of 2024...
According to the Futu Securities News App, Win Hanverky Group (03322) announced that the group is expected to incur a post-tax loss of approximately HKD 85 million in the first half of 2024, compared to a post-tax loss of HKD 0.177 billion in the same period of 2023.
The announcement stated that the estimated reduction in post-tax losses was mainly due to the increase in operating surplus from the sportswear production business of about HKD 0.118 billion to an operating surplus of HKD 2 million (as of June 30, 2023: operating loss of HKD 0.116 billion). The successful transition from operating losses to operating surpluses was mainly due to an increase in revenue of about HKD 0.261 billion, or 27%, to HKD 1.215 billion (as of June 30, 2023: HKD 0.954 billion). The increase in revenue was mainly due to a significant improvement in the problem of excess inventory among customers and a recovery in customer orders. As of January 2024, the group has terminated its exclusive Champion store operations, so there was no loss incurred from the discontinued business of the Champion fashion brand in the high-end fashion retail trade during this period (as of June 30, 2023: HKD 35 million operating loss).
In addition, the slightly increased operating losses in the continuing high-end fashion retail trade of about HKD 36 million to HKD 50 million (as of June 30, 2023: operating loss of HKD 14 million) were offset by the above reasons, and the operating loss has taken into account the impairment loss of approximately HKD 20 million (as of June 30, 2023: HKD 1 million). The increase in operating losses was mainly due to sustained weak consumer spending.