① Affected by the falling stock price of the participating company Guiguang Network, Gehua Cable experienced its first annual performance loss since listing, which is expected to exceed 148 million yuan. ② Last year, Guiguang Network had a cumulative decline of nearly 40%. As of September 30, 2023, Gehua Cable held 299.564 million shares of Guiguang Network, accounting for 2.48% of Guiguang Network's total share capital.
Finance Association, January 23 (Reporter Cui Ming) Affected by the falling stock price of the participating company Guiguang Network (600996.SH), Gehua Cable (600037.SH) experienced its first annual performance loss since listing, which is expected to exceed 148 million yuan.
This evening, Gehua Cable announced its 2023 annual results forecast. The net profit loss to mother is estimated to be 148 million yuan to 209 million yuan. In 2022, the company achieved net profit of 334 million yuan to mother, an increase of 60.07% over the previous year. Based on previous annual results, this indicator was negative for the first time since the company went public.
As for the reason for the change in performance, Gehua Cable said that the fair value of Guiguang Internet shares held by the company dropped significantly year-on-year, and that the torrential rain disaster in Beijing in July-August also had a certain impact on the company's business performance.
A Finance Association reporter learned that Guiguang Internet shares invested by the company are included in the fair value change profit and loss account, so fluctuations in the latter's stock price have a clear impact on the company's net profit.
Last year, Guiguang Network had a cumulative decline of nearly 40%. Net profit lost 475 million yuan in the first three quarters, and the loss margin increased 70.14% year on year. As of September 30, 2023, Gehua Cable held 299.564 million shares of Guiguang Network, accounting for 2.48% of Guiguang Network's total share capital.
It is worth noting that in 2023, Gehua Cable's net profit after deduction increased, which is estimated to be a loss of 1994.57 million yuan to a profit of 407.455 million yuan. In the same period last year, the company lost 34.9056 million yuan in net profit after deduction.
The cable TV industry has been in a period of decline in recent years. As a cable TV operator in Beijing, Gehua Cable is also facing difficulties such as loss of users and declining gross margin. In the second half of last year, the State Administration of Radio, Film, and Television carried out complex control of TV “match-making” charges and operations. Gehua Cable passed the inspection as the first batch of pilots. At the end of the year, the company said that cable TV use in Beijing had stopped falling and stabilized.