Glonghui, March 22, 丨 Shuncheng (00531.HK) announced that for the year ending December 31, 2022, the company's net annual sales amount was US$598.9 million, an increase of 22.7% over 2021. The increase in net sales was mainly due to the backlog of demand caused by the pandemic and the easing of supply chain disruptions. Gross margin was reduced to 25.5% from 26.3% in 2021. The decrease in gross margin was mainly due to increased production costs.

Compared to 2021's profit of US$27.2 million, the Group recorded a profit of US$15.1 million in 2022. The decline in profit is mainly due to the fact that the Group no longer recorded any impairment reversals due to property, plant and equipment in 2022 (2021: about $7 million) and an increase in net losses held on trading investments due to a sharp increase in interest in 2022. The Board recommended a final dividend of HK$0.01 per share for the year ending 31 December 2022.