Summary by Futu AI
China Meidong Automobile Holdings Limited (MEIDONG AUTOMOBILE) issued a profit warning, predicting that profit attributable to equity shareholders in 2023 will fall by about 73% compared to 2022. The main factors of the decline include macroeconomic effects resulting in weak consumer spending, a decrease in gross profit of no more than 18%; a decrease in the reputation and dealer rights of the Star Automotive Group Limited by approximately RMB25 million; legal dispute litigation expenses of approximately RMB59 million; dividend withholding payment of income tax increased to approximately RMB80 million MILLION YUAN; AND THE ADDITIONAL COST OF ISSUANCE AND AMORTIZATION RELATED TO ZERO-INTEREST GUARANTEED CONVERTIBLE BONDS IS APPROXIMATELY RMB109 MILLION. The company stressed that the overall financial situation remained stable despite the expected decline in profits. Mideast Automotive will continue to maintain a prudent financial strategy and will release detailed financial results by the end of March 2024.