Shunten Intl(00932.HK) announced that it is expected to record revenue of approximately HKD232,000,000 to HKD238,000,000 for the year ending March 31, 2024, while revenue for the previous year was approximately HKD216,100,000. However, it is expected that the group will achieve a net comprehensive loss of approximately HKD2,000,000 to net comprehensive profit of approximately HKD2,000,000 for the relevant year to be accounted for by company shareholders in comprehensive performance, while net comprehensive profit attributable to company shareholders for the previous year was approximately HKD41,000,000.

The board of directors considers that the main reasons for the expected decrease in net comprehensive performance of the company shareholders are as follows: (i) due to the sustained economic recovery of Hong Kong and the increasing demand for the company's products, the revenue and gross profit have increased; (ii) compared with the fair value increase of investment properties in the previous year of about HKD11,900,000, the fair value of investment properties in the relevant year has decreased by about HKD15,000,000; (iii) the designated counter rent in the famous retail chain distributor stores has increased, which is in line with the growth of the designated counter income, because the rent calculation is related to the total sales of the designated counter; (iv) in the relevant year, the commission expenditure of salespersons increased due to the group's staircase commission policy; (v) compared with the one-time government subsidy of approximately HKD3,800,000 recorded in the previous year, there was no one-time government subsidy for the relevant year's employment retention program; and (vi) in the relevant year, the increase in bank borrowings and payables to a shareholder resulted in an increase in financing costs.

The group has sufficient liquidity and continues to maintain a sustainable and healthy business operation status. The group is focused on taking effective measures to expand its business channels, strengthen brand image, optimize cost structure and enhance the company's competitive advantage. The company will rely on its advantages to focus on long-term improvement of business performance.