According to the Zhitong Finance App, Tongyuan International (03830) announced interim results for the six months ending October 31, 2022. The group achieved revenue of HK$125 million during the period, a decrease of 27.51% over the previous year; losses attributable to shareholders were HK$36.189 million, an increase of 992% over the previous year; and the basic loss per share was HK3.6 cents.

The announcement stated that during the review period, revenue generated from North America decreased by 47.6% to approximately HK$55.3 million (2021: HK$106 million). Average sales prices and sales orders have both declined. The decline was mainly due to lower earnings from the most developed countries in the region and the shift in product mix to products with relatively lower unit prices. Furthermore, due to delays in delivery last year and delays in the arrival of goods due to a backlog of goods in US ports, retailers had high inventory levels in 2022, so they would rather not place as many orders as last year. As a result, sales performance was most affected in North America.

On the one hand, revenue generated from Europe decreased by 32.7% during the review period to approximately HK$37.4 million (2021: HK$55.6 million). Average sales prices and sales orders have both declined. The decline in earnings was mainly due to the economic downturn in several developing countries in Eastern Europe (Ukraine in particular) caused by the war against Russia; and the appreciation of the US dollar currency, which damaged the purchasing power of the European region.