On March 8, Gelonghui Group (01695.HK) announced that compared with a loss of approximately MYR 0.89 million after tax in the previous year, the Group expects to record a loss of no more than MYR 2.50 million after tax in the 2023 fiscal year.

The main reasons for the expected loss after tax are as follows: revenue decreased by approximately MYR 6.40 million due to global market conditions; USD term loan conversion losses increased by approximately MYR 1.30 million due to the appreciation of the US dollar against MYR during the year; net financial costs increased by approximately MYR 800,000 due to rising interest rates on US dollar loans; and impairment of property, plant and equipment in one of the cash-generating units of approximately MYR 1.30 million.

Despite this, these anticipated losses were reduced as gross margin increased from around 15% in FY2022 to around 20% in FY2023.