Moody Tech Hldg (01400.HK) announced that the group is expected to achieve the following financial performance during the period: (1) Income is expected to decrease by about 35% compared to the same period last year, from approximately RMB 846 million to approximately RMB 546 million; and (2) The company's attributable loss for the period is expected to be no less than RMB 145 million, while the loss for the same period last year was approximately RMB 89 million.
The board of directors believes that the decrease in income and increase in loss during the period are mainly attributable to: (i) the decrease in demand for fabric and clothing products, resulting in a decrease in overall revenue and gross profit during the period; (ii) the incurrence of additional administrative expenses during the period, including but not limited to rental expenses, research and development expenses, and depreciation; and (iii) in the same period last year, a gain on bargain purchase of approximately RMB 78 million was recognized, while there were no related projects during the period.
