Market Insight

2024.07.09 09:41

Market News TAN CHONG INT'L sees 1H profit from operations to drop

(Infocast News) Tan Chong International Limited (00693)announced that, based on the preliminary review of and assessment on information currently available to the Company, the Group is expected to record an unaudited unrealised gain on its investments designated as at fair value through other comprehensive income for the six months ended 30 June 2024 . The gain is due to share price changes of its listed investments, which are marked to market and therefore unrealised. The expected unrealised gain amounts to HKD262 million as compared to the unrealised gain of HKD309 million for the corresponding six months period in 2023. The unrealised gain will be reported in the Group’s other comprehensive income statement for the Period. It is not expected to be reclassified to the Group’s consolidated statement of profit or loss. The Group issued a profit warning that it experienced a severe drop in sales in the automotive division for the first half of 2024 compared with the first half of 2023. The areas of significant losses are Complete KnockDown (CKD) markets in Malaysia and Thailand, and Complete Built-Up (CBU) markets in Taiwan, Singapore, and Philippines. The financial services company Ethoz Group Ltd and its publicly listed logistics company Zero Co., Ltd in Japan showed some growth compared to the previous corresponding year. The total profit from operations in the first half of 2024 dropped from HKD432 million to HKD250 million. The profit after tax dropped from HKD187 million to HKD25 million. From the current relatively strong booking of orders in our automotive division,the company expected the second half of 2024 to perform much better. The overall financial health and operational readiness of the Group remain stable and robust, despite the very challenging circumstances. (SY)

Data Source：INF