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Hengdeli narrowed its loss by 91.3% in 1H2023
International commodity trading business were on a steady upward trend
HONG KONG, Aug 22, 2023 - (ACN Newswire) - Hengdeli Holdings Limited (3389) announced its interim results for the six months ended 30 June 2023. During the period under review, the Group recorded revenue of RMB675,621,000, representing a year-on-year increase of 20.9%; high-end consuming accessories business recorded revenue of RMB316,992,000, representing a year-on-year increase of 13.3%; commodity trading revenue amounted to RMB358,629,000, representing a year-on-year increase of 44.4%. In the first half of the year, the Group's loss narrowed sharply to RMB8,799,000 (six months ended 30 June 2022: loss of RMB27,912,000), representing a year-on-year decrease of 68.5%. Loss attributable to equity shareholders amounted to RMB1,985,000 (six months ended 30 June2022: loss of RMB22,929,000), representing a year-on-year decrease of 91.3%. The narrowed in the loss was mainly attributable to the improvement in gross profit and the discontinuation of the watch business which led to a significant reduction in inventory provision and operating expenses of the watch business.
During the period under review, the mainland Chinese economy is gradually normalizing. Due to the increase in sand and gravel prices, the Group's international commodity trading business were on a steady upward trend, with sales and profits both significantly higher than the same period of the previous year. During the period under review, the global bulk shipping industry began to experience volatility which continued during the period under review. As such, the Group always maintained a prudent and stable business strategy. The Group adhered to a customer-centric approach, in addition to intensively tapping into traditional transportation routes, the Group also opened up a coal transportation route from Colombia to Korea, which contributed to the period's positive return. In the first half of the year, the overall performance of the shipping business was stable and positive, with better results in terms of revenue and profit.
During the period under review, the high-end consumer supporting business continued to be affected by economic pressures. However, the Group adopted various measures while maintaining its solid foundation which contributed to its strong topline performance. During the period under review, the overall revenue of the high-end consuming ancillary business saw positive growth. However, due to the substantial increase in expenses for new project development and labor costs, the net profit of the company has been greatly affected.
In the second half of the year, the Group will continue to adhere to its principle of "sound, steady and long-term operations", as it embraces China's strengthening economic development. The Group will monitor the market, while refining its business model guided by its new development directions. The Group will also further advance its process of international trade by continuously expand and strengthening its international shipping business closely related to international trade, as it strives to grow, strengthen participation within international shipping supply chain in the near future, and achieve new breakthroughs in corporate development.
The Group will continue to adapt to market trends and continuously enhance the service standard for its integrated services for commercial space in both Mainland China and international markets. The Group will also adjust the manufacturing of its high-end accessories for renowned watches while embarking on a limited number of diversified business activities including the manufacturing of high-end consuming accessories in other high-end lifestyle products such as jewellery, cosmetics and mobile phones, as well as expand its commercial space beautification services to include living space beautification services, thus becoming an indispensable independent segment in the industry ecological chain of high-end consuming accessories.
Source: Hengdeli Holdings Ltd
Sectors: Daily Finance
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