Granol Power, November 13th, Wahsun Handbags International Holdings (02683.HK) announced that as of September 30, 2024, during the six months period ("reporting period"), the Group is expected to record a net profit attributable to owners of the company ranging from approximately 25 million Hong Kong dollars to 29 million Hong Kong dollars, an increase of 19% to 38%, while in the six months period ended September 30, 2023 ("historical period"), the net profit attributable to owners of the company was approximately 21 million Hong Kong dollars.

The increase in net profit attributable to owners of the company during the reporting period compared to the previous period is mainly attributed to the following factors: (i) revenue increased from approximately 0.334 billion Hong Kong dollars in the previous period to approximately 0.352 billion Hong Kong dollars in the reporting period, an increase of approximately 5%. This is mainly attributed to continuous orders from new customers and sales from Europe (especially the Netherlands); and (ii) the Group's increased sales volume of goods led to increased revenue, along with the continuous implementation of several strict cost control measures, successfully reducing the Group's basic production and operation costs, resulting in an increase in gross profit and gross margin.

In summary, the gross margin during the reporting period increased compared to the previous period. However, this increase was partly mitigated by the following factors: (i) an increase in administrative expenses, mainly due to an increase in employee welfare expenses, consistent with the level of sales activities rising; (ii) an increase in trade receivables impairment provision during the reporting period, reflecting an increase in the level of trade receivables subject to the application of the expected credit loss model; and (iii) an increase in taxable surplus profits during the reporting period resulting in an increase in income tax expenses.