Glonghui, May 17, 丨 Osi Group (01161.HK) announced that for the six months ending March 31, 2024, the Group expects the net profit recorded by shareholders to be reduced by no less than HK$40 million, while the six-month period ended March 31, 2023 recorded about HK$57.1 million.

The decrease recorded was mainly due to: (1) increased employee costs due to high-performing employee retention measures; (2) increased marketing expenses due to investing in high-profile and high-impact advertising campaigns to enhance the Group's brand image; and (3) confirmation of about HK$11.4 million in non-cash goodwill impairment. To enhance the Group's profitability, the Group will focus on retail sales of high-quality skincare and beauty products from Japan in Hong Kong, and will not extend the distribution rights for HABA products in mainland China due to poor performance. The Group wishes to emphasize that the above impairment of goodwill will not have any impact on the Group's operations on cash flow.