Jiachen Holdings (01937) issued an announcement, relative to the six months ended June 30, 2023 (comparable period)...
According to the announcement, the company's attributable net profit for the six months ended June 30, 2023 (comparable period) is approximately RMB 3 million, and the attributable net profit for the six months ending June 30, 2024 (current period) is expected to increase by no less than 100%.
According to the announcement, the expected increase in the company's attributable net profit for this period is mainly due to: a revenue increase of not less than 20% compared to the comparable period's revenue of approximately RMB 87.3 million; and a gross margin increase of not less than 5 percentage points compared to the comparable period's gross margin of 18.6%. The board of directors believes that the revenue increase and gross margin increase are mainly due to two factors: the commencement of production projects with sales orders obtained in 2023; and the ability to achieve higher selling prices for sales orders obtained in the second half of 2023, with relatively lower production material costs for this period compared to the comparable period. These circumstances can effectively drive revenue growth and increase profit margins.
