According to the Zhitong Finance App, Weifa International (00765) announced that the group expects to achieve a comprehensive pre-tax loss of not less than HK$27.606 million in 2023, an increase of 375% over the previous year.

According to the announcement, the increase in losses was mainly due to the decline in sales of toy products, which led to a significant decrease in the Group's revenue of about 12.2% and a decrease in gross margin from 34.7% to 32.2%; a one-time income of HK$3,319,800 missing from other payables confirmed in the 2022 financial results; an increase in administrative expenses (including staff costs and directors' remuneration) of about 9.5%, mainly due to an increase in the average number of full-time employees of the Group in 2023; and the above offset an increase of about 184% in net foreign exchange earnings due to the appreciation of the US dollar.