Gelonghui November 10th 丨Lazy Pig Technology (08379.HK) announced that for the six months ended September 30, 2023, the Group's profit was HK$21.469 million, up 0.54% year on year; the Group incurred a net loss of approximately HK$10.8 million, while the Group generated a net loss of approximately HK$7.9 million for the six months ended September 30, 2022. The increase in net loss was mainly due to (i) increased sales and distribution costs; (ii) increased staff costs; and (iii) increased impairment losses on property, plant and equipment. The majority of the Group's sales and service provision costs are for sold inventory costs.

For the six months ended 30 September 2023, the Group's sold inventory costs were reduced by approximately 8.5% to approximately HK$6.5 million. Gross margin increased from approximately 34.6% for the six months ended September 30, 2022 to approximately 48.7% for the six months ended September 30, 2023. The gross profit also increased from approximately HK$7.4 million for the six months ended September 30, 2022 to approximately HK$10.5 million for the six months ended September 30, 2023. The increase in gross profit and gross margin is mainly due to a reduction in the direct costs of operating software development centers in China.