Zhitong Finance App News, Xinxing Printing (01975) issued an announcement. Compared with the profit obtained by the Group last year, the profit for the year ending June 30, 2024 is expected to be reduced by no less than 75%, mainly due to the following factors, including:

Macroeconomic challenges, the global economic slowdown, and general inflationary pressures have led to more cautious consumer spending, thereby reducing demand for printed and promotional products, which in turn affects revenue streams. Therefore, close monitoring of economic indicators remains critical.

Fixed cost constraints. Despite a slight reduction in sales costs and administrative expenses, fixed production and operating costs remain, putting pressure on profitability in the face of declining revenues. Strategic initiatives to optimize operational efficiency are currently being evaluated.

Competitive market dynamics. Increased competitive market dynamics have increased price pressure, affected market share and reduced profit margins. The focus on maintaining quality and service excellence aims to strengthen competitive advantage.