On March 8, GLONGHUI (00746.HK) announced its annual results. For the year ended December 31, 2023, the Group recorded a total turnover of HK$4.51 billion, a year-on-year decrease of 31.0%, while profit during the year was HK$401 million, a sharp decrease of 65.3% year-on-year. The gross margin of the chemical business fell 13.1 percentage points to 26.0% year-on-year; the Group's net profit margin also fell 9.8 percentage points year-on-year to 9.9%. Basic earnings per share for the year ended 31 December 2023 were HK48.6 cents. The proposed final dividend is HK14 cents per share.

In terms of chemical business, the overall atmosphere in the domestic manufacturing industry is still weak, and prices of industrial materials such as bulk chemical products remain low. Large fluctuations in the prices of various raw materials for lithium batteries have also led downstream companies to actively adjust production plans to respond. As a result, sales prices achieved for lithium battery additives this year have also dropped significantly compared to the same period last year. As stocks of raw materials purchased earlier have been digested one after another, and the Group actively strengthened cost control measures during the year, gross profit has improved since the first half of the year. In terms of property business, the Group sold 47 more “Xinyuexi” residential units during the year, leaving only 28 units for sale. The commercial floor occupancy rate was over 80%, mainly driven by the “Xinyuexi Shangjia Apartment” talent apartment. The revenue from the property business was approximately HK$70 million during the period.