Gelonghui June 23 丨Zhang Li International (01693.HK) announced that the Group's revenue from continuing operations was reduced from 285.8 million ringgit in FPE2022 to 110.1 million ringgit in fiscal year 2023. The Group's gross profit from continuing operations was 4.3 million ringgit in fiscal year 2023, while FPE2022's loss was 50.1 million ringgit. Profit attributable to company owners in fiscal year 2023 was RM11.9 million, while FPE2022's loss was RM56.5 million. Basic earnings per share for fiscal year 2023 were 0.66 ringgit, while FPE2022's basic loss per share was 3.14 ringgit.

The significant difference in revenue was mainly due to FPE2022 recording an 18-month period, while FY2023 recorded only a twelve-month period. In addition to this, fewer remaining orders also led to a sharp decrease in revenue recognition for fiscal year 2023, while the estimated impact of default compensation on the transaction price of construction contracts also led to a decrease in the Group's identifiable revenue.

The net profit improvement in FY2023 was mainly due to (i) the Group's successful extension of the construction period for two major projects, which led to a reduction in anticipated default compensation payable to customers; (ii) a reduction in impairment losses on financial assets and contract assets; (iii) the return of bank performance deposit provisions after Client A's appeal against the injunction granted to the Group by the Malaysian Court of Appeal rejected by Client A; and (iv) loss of approximately 25.7 million ringgit from FPE2022's sale of subsidiaries, which did not occur in FPE2022.