New Sparkle Roll International Group Limited provided earnings guidance for the six months ended 30 September 2023. For the period, the company expects to record a loss attributable to owners of the Company of approximately HKD 52 as compared with a profit attributable to owners of the Company of approximately HKD 7 million for the six months ended 30 September 2022.
Such expected loss was mainly attributable to the following factors: (i) the decrease in the revenue and the gross profit of the Group by approximately 18% and 37% respectively for the Period. Such decrease in the revenue and gross profit of the Group was mainly related to the auto business of the Group, which was mainly attributable to the continuing weak market sentiment and keen competition during the period. The decrease in the gross profit was partially offset by the decrease in the selling expenses and financial costs of the Group; (ii) recognition of impairment of goodwill on property management business which is based on a preliminary valuation by an independent valuer; and (iii) the recognition of one-off equity-settled share option expenses for directors and staff in August and September 2023, such expenses were non-cash nature.