Recently, Tianchang Group (02182.HK) announced that the group is expected to see a decrease of at least 30% in revenue for the year ending December 31, 2023 compared to the year ending December 31, 2022, with a reduction of 1.1439 billion Hong Kong dollars. Additionally, the group is expected to see a decrease of at least 60% in net profit for the year ending December 31, 2023 compared to the year ending December 31, 2022, with a reduction of 1.059 billion Hong Kong dollars.
The Board of Directors believes that the decrease in expected revenue and net profit is mainly attributable to the decrease in sales of e-cigarette products. As disclosed in the company's announcements dated March 14, 2022, June 14, 2023, and January 12, 2024, the sales orders of e-cigarette products have decreased for this fiscal year following the cancellation of exclusive rights agreements between the e-cigarette products' major customers.
It is reported that Tianchang Group used to provide OEM services for the e-cigarette brand "blu" under Imperial Tobacco. In their semi-annual report in 2023, Tianchang Group mentioned that sales orders for e-cigarette products had decreased during this period due to the cancellation of exclusive rights clauses between the main e-cigarette product customers.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
