According to the Zhitong Finance App, Baolong Technology (01861) announced that the Group expects net profit attributable to shareholders to increase by no less than 90% compared to the net profit attributable to shareholders of about HK$13.2 million for the six months ending June 30, 2022.

The board of directors believes that the expected increase in net profit is mainly due to lower costs of purchasing solvents (the main raw material for products) due to lower crude oil prices; increased bargaining power with suppliers, increasing the group's gross margin; focusing on high-margin products; the overall business environment drastically reduced transportation costs; and implementation of strict cost control measures to reduce sales and distribution costs and other expenses.