Bawang Group (01338.HK) announced on November 15th that, based on the management's preliminary review of the operating performance for the first ten months up to 2024, the management expects a significant decrease in the group's net income for the first ten months of 2024 compared to the same period in 2023.

During the first ten months of 2024, the group's revenue slightly increased compared to the same period in 2023, and maintained a relatively stable gross margin. This can be attributed to the group's efforts starting from 2024 to use renewable cecep solar energy in our production plants to save production costs and reduce depreciation. However, the group still expects the consolidated net income for the first ten months of 2024 to decrease to approximately RMB 5 million (a decrease of about 64% compared to the same period last year), mainly due to (1) increased advertising and promotional expenses on platforms such as Douyin, jd.com, and traditional distribution channels; (2) increased investment in research and development activities; and (3) increased general administrative and management expenses, such as employee costs.