Gelonghui, January 29丨Renzhi Co., Ltd. (002629.SZ) announced the 2023 annual results forecast. Net profit loss attributable to shareholders of listed companies during the reporting period was 31.5 million yuan to 38.5 million yuan, down 323.95%-373.72% from the same period of the previous year, profit of 14.0654 million yuan for the same period last year; net profit loss after deducting non-recurring profit and loss of 50 million yuan to 57 million yuan, down 12.38%-28.11% from the same period last year; loss of 44.4928 million yuan for the same period last year; basic earnings loss per share 0.076 yuan/share - 0.093 yuan/share.

During the reporting period, the company thoroughly implemented the “14th Five-Year Plan” strategic plan, promoted high-quality development through comprehensive deepening reforms, and continued to improve project implementation and market development. Sales revenue increased over the same period last year. At the same time, the company has adopted a series of measures to optimize internal management, strengthen the implementation of cost reduction and efficiency, and promote the improvement of the company's efficiency. The main reason for the loss during the reporting period was that in order to enhance the competitiveness of the main business, expand beneficial projects, dispose of inefficient assets, and cause asset disposal losses. At the same time, in order to attract and retain talents, the company implemented a stock option incentive plan, and confirmed the cost of the incentive plan for the current year.

During the reporting period, non-recurring profits and losses were mainly due to debt restructuring, government subsidies, asset disposal, etc. in litigation cases. The total impact on the cumulative amount of current profit and loss ranged from 17 million yuan to 20 million yuan.

Excluding the impact of the above issues, demand from downstream customers in the company's main business has recovered, business scale has increased, profitability has improved to a certain extent, and loss in operating performance has shrunk.