HUNGFOOKTONG issued a profit warning, expecting the annual loss attributable to shareholders to decrease to approximately HKD 14 million, a year-on-year narrowing of about 60%
HUNGFOOKTONG issued a profit warning, expecting the loss attributable to shareholders for the fiscal year 2024 to decrease to approximately HKD 14 million, a year-on-year narrowing of about 60%. Despite challenges in the Hong Kong retail market, the group has improved production processes and optimized the sales mix, resulting in an increase in gross profit margin and effective control of operating expenses. Advance payments increased by 9.1% to HKD 162.6 million, and the financial condition remains robust
According to the announcement from HUNGFOOKTONG (01446), it is expected that the loss attributable to the owners of the company for the fiscal year ending December 31, 2024 (2024 fiscal year) will decrease to approximately HKD 14 million, narrowing by about 60% compared to the loss of HKD 34.6 million attributable to the owners of the company for the fiscal year ending December 31, 2023 (2023 fiscal year).
In the 2024 fiscal year, the retail market in Hong Kong, especially the catering industry, continues to face challenges due to the ongoing trend of Hong Kong residents traveling to the mainland for consumption and overseas tourism, coupled with weakened consumer confidence in the pace of Hong Kong's economic recovery, and a strong Hong Kong dollar leading to more cautious spending by tourists. The Group's revenue decreased by approximately 7.7% to HKD 620.7 million. Nevertheless, the Group improved its gross profit margin by enhancing production processes, optimizing sales mix, and adjusting operational and cost structures, while effectively controlling operating expenses. As a result, the loss attributable to the owners of the company has significantly reduced compared to the 2023 fiscal year.
It is worth noting that the advance receipts (referring to the sales of prepaid vouchers and points, the revenue of which will be recognized when customers redeem goods in the future) increased by 9.1% from HKD 149 million as of December 31, 2023, to HKD 162.6 million as of December 31, 2024.
Despite facing significant challenges in the operating environment during the 2024 fiscal year, the Group's financial position remains robust
