Sinofortune Fin (08123) announced that the Group expected to record a loss for the six months ended June 30, 2024...
Sino Fortune Financial Group Limited (08123) announced that the group expects to record a loss of approximately HKD 13 million for the six months ended June 30, 2024, compared to a loss of approximately HKD 13.6 million for the corresponding period in 2023. The main reasons for the losses during the reporting period were the decrease in sales and revenue of various business segments and the increase in financing costs. Despite the tax reduction provided by the Chinese government for the sales of imported cars, the group still recorded losses in this business segment.
The Board of Directors noted that the demand for gasoline cars has been continuously declining in many countries in the past few years, while the use of new energy vehicles is becoming more and more popular. The company's management team regards this trend as the global strategy for the group's development in the coming year. The Board of Directors expects that the demand for gasoline cars will further shrink, and the profit margin will also decrease due to intense price competition. The company's management team is now negotiating with dealers to launch more new energy vehicles in the Chinese market and promote tax-free car business in Hainan Province. The Board of Directors remains optimistic about this business segment and hopes that the launch of new energy vehicles can increase sales and performance in this segment.
