Gelonghui, March 20 | China Southern Communications (01617.HK) announced that the Group expects to record net profit and comprehensive income of approximately RMB 4.0 million to RMB 6.0 million for the year ended December 31, 2023, compared with the net loss and comprehensive expenses recorded in the previous year of approximately RMB 8.1 million.

The Board of Directors believes that the improvement in annual performance is mainly due to the following factors: 1. Lower raw material costs led to lower sales costs, which led to an increase in gross profit and gross margin; 2. Implementation of stricter cost control measures reduced administrative expenses; and 3. Increased income tax credits under Chinese law.