[Corporate Earnings Surprise] RUIHE DATA expects mid-term profit to increase by up to 60 million RMB, a rise of 39%, with revenue declining
RUIHE DATA announced a positive profit alert, expecting that the interim profit attributable to the company's owners for the period ending June 30 will be between RMB 55 million and RMB 60 million, an increase of 27% to 39% year-on-year. Revenue for the period is expected to be between RMB 95 million and RMB 100 million, a decrease of 17% to 21%. The profit growth is mainly attributed to improved operations of joint ventures, reduced employee benefits, and lower depreciation expenses, partially offset by decreased gross profit and increased credit losses. The group expects to announce its formal results at the end of August
According to a report from Economic Information Agency on the 14th, RUIHE DATA (03680) announced that it expects the interim profit attributable to company owners for the six months ending June 30 to be between approximately RMB 55 million and RMB 60 million, an increase of about 27% to 39%. During this period, revenue is expected to be between approximately RMB 95 million and RMB 100 million, a decrease of about 17% to 21%.
The group stated that the expected increase in profit during the period is mainly due to the improved operating conditions of its associate company, Shenzhen Jichuang Investment Enterprise (Limited Partnership), which contributed approximately RMB 11.84 million to the profit of the associate company, a reduction of approximately RMB 4.15 million in employee benefits expenses, and a decrease of approximately RMB 7.67 million in depreciation and amortization expenses. However, this was partially offset by a decrease in gross profit of approximately RMB 2.99 million and an expected increase in credit losses on financial and contract assets of approximately RMB 5.56 million. The overall impact narrowed the operating loss by approximately RMB 3 million to RMB 3.5 million.
The group expects to announce its results at the end of August. (wh)
