KA SHUI INT'L Holdings expects last year's loss to widen to no more than HKD 65 million

KA SHUI INT'L Holdings (0822) announced that the group expects to record a net loss attributable to equity holders of the company of no more than HKD 65 million for the year ending December 31, 2024 (the same below), compared to a net loss of approximately HKD 28.4 million for the same period in 2023; the group anticipates that revenue for the year 2024 will increase compared to 2023.

The announcement pointed out that the increase in net loss is mainly due to three reasons. First, more resources will be allocated to infrastructure improvements, process enhancements, and personnel optimization at the Mexico factory in 2024 to achieve optimal operational efficiency; second, an overall increase in costs and expenditures, including but not limited to costs related to developing and exploring new market business and non-recurring expenses such as impairment of non-core assets; third, the low-margin high-volume strategy and changes in product mix have led to a decline in overall gross margin, especially as the gross margin for new energy vehicle-related products is lower than that for plastic products.

The announcement also stated that the company has actively invested in emerging markets in the past and has begun to see returns on these investments, expecting that the related strategies will lay the foundation for sustainable growth in the future.

The company is still preparing its performance for 2024, and the announcement information is a preliminary assessment that has not been reviewed by auditors or the audit committee. The group's performance for 2024 is expected to be published by the end of March 2025