Gelonghui, March 8, 丨 Yunnan Construction Investment Concrete (01847.HK) announced that the company expects a net loss of approximately RMB 38.31 million for the year ended December 31, 2023, while net profit for the year ended December 31, 2022 is approximately RMB 29.88 million.

The main reason for this anticipated loss is that the decline in operating costs was less than the decline in operating income. In 2023, although the Group continued to adopt active cost reduction and efficiency measures, which reduced operating costs by about 11% compared to 2022, due to factors such as the macroeconomic environment and fierce market competition, the sales volume of the Group's main product, commercial concrete, fell by about 7% compared to 2022, and the unit sales price fell by about 8% compared to 2022, resulting in a 15% drop in revenue compared to 2022.

As of December 31, 2023, the total amount of new sales contracts signed by the Group was approximately RMB 3.48 billion. Among them, the amount of newly signed sales contracts with independent third parties accounted for about 60%, which is about 29 percentage points higher than in the same period in 2022.

In addition, the Group is expected to sign a number of sales contracts in the near future. According to preliminary estimates, the amount of new sales contracts is estimated to be about RMB 1.12 billion in the first quarter of 2024, of which the concrete business is expected to sign new sales contracts of about RMB 920 million, involving demand for concrete of about 31.0 million cubic meters; new sales contracts for new products such as RPC covers, prefabricated components, and commercial mortar are estimated to be about RMB 16.0 million.