On August 20, Gelonhui announced that based on the unaudited comprehensive management accounts of the group for the six months ended June 30, 2024 ("the relevant period"), and the preliminary assessment of other information currently available to the board of directors, it is expected that the group's net profit attributable to owners of the company for the relevant period will decrease by approximately 94% to 99% compared to the same period in 2023.
The decrease in the net profit attributable to owners of the company for the relevant period is mainly due to the following factors: (i) despite the significant increase in sales volume of compatible printer consumable chip due to strong demand, the gross margin of compatible printer consumable chip of the group during the relevant period has dropped significantly due to intense competition in the industry; (ii) there was no recognition of revenue from chip technology and design services during the relevant period; (iii) mainly due to the group's tightened credit control, the income from the sale of integrated circuits and other printer consumable components during the relevant period has decreased; (iv) in order to strengthen the group's new business development (such as internet of things chips, online sales, etc.), marketing activities have increased, leading to an increase in sales and distribution expenses for the group during the relevant period.