Time Group (01023.HK) issued a profit warning, expecting that its annual net profit will decrease by 45% to 55% as of the end of June, compared to a net profit of 0.203 billion yuan in the same period last year. The company stated that the decrease in net profit is mainly due to global inflationary pressures and geopolitical tensions, which have reduced demand for the manufacturing business, thereby affecting its sources of revenue. In addition, there were forex losses during the period, while forex gains in the same period last year amounted to approximately 40.402 million yuan. The company mentioned that although net profit has decreased, the dividend policy remains unchanged.

The company expects that the income from the manufacturing business will decrease compared to the same period last year, when it was 1.342 billion yuan. This is due to global economic uncertainties and excess inventory. Customers have become more cautious in placing orders and have reduced the scale of their orders. On the other hand, the revenue from the retail trade business will increase compared to last year, when it was 0.471 billion yuan. However, the pre-tax profit will decrease compared to the same period last year, as the company has invested resources and efforts in the grand opening of the Time E-commerce Center and provided more discounts to customers in order to boost sales volume.

The company also expects that the annual income from property investment business will decrease compared to the same period last year, when it was 13.5 million yuan. This is mainly due to higher fair value losses from the revaluation of investment properties in the current fiscal year.