On the evening of January 30th, Smoore International (06969) issued a profit warning. According to the announcement, it is expected that Smoore International's net profit for 2023 will be between 1.48 billion yuan and 1.809 billion yuan (approximate 20-25 million USD), representing a year-on-year decrease of approximately 27.9% to 41%.
According to Smoore's announcement, the main reason for the decrease in retained earnings within Smoore Group in 2023 was:
The decrease in profits due to a decline in revenue during this period is primarily attributed to a significant decrease in revenue from the mainland Chinese market compared to the same period last year. The steady growth in revenue from overseas markets was not sufficient to offset the significant decline in revenue from the mainland Chinese market.
The decline in gross profit margin is primarily attributed to a significant decrease in the proportion of revenue generated from cartridge-based products with higher gross profit margins in the Chinese mainland market, as well as a slight increase in the proportion of revenue from disposable products with relatively lower gross profit margins in overseas markets.
According to an announcement, as of the date of this announcement, the company is still preparing the financial performance for the group for the fiscal year 2023. The information provided in this announcement is based solely on a preliminary review of the comprehensive management accounts of the group, which have not been independently audited. The actual performance for the fiscal year 2023 of the group may differ from the information provided in this announcement.
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