Kam Hing International Holdings Limited provided earning guidance for the six months ended 30 June 2023. The board of directors of the Company informed the shareholders of the Company (the "Shareholders") and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023 (the "Interim Period") and assessment of the information currently available, the Group is expected to record a net loss attributable to the owners of the Company in the range of about HKD 20 million to HKD 25 million for the Interim Period as compared to the net profit attributable to the owners of the
Company for the six months ended 30 June 2022. The Board considers that the net loss attributable to owners of the Company for the Interim Period is primarily attributable to: (i) the decrease in sales volume and amount due to the low demand of orders since second half of year 2022 (though there has been a gradual recovery of demand in latter of the Interim Period after a sluggish start); (ii) the gross profit margin being maintained at a low level as
having some low margin orders helped maintain production capacity of the Group; and (iii) the one-off tax payment for approximately HKD 11.5 million for prior years' tax modification in the People's Republic of China. Despite the foregoing, the Group has maintained strong working capital and normal business operations over the past months, and the Board considers that the overall financial, business and trading positions of the Group remain healthy.