From profit 67.8 billion yuan to a loss of more than 2 billion yuan, Red Star Macalline (01528.HK) has taken a sharp turn for the worse in 2023.
On January 30, Red Star Macalline Home Furnishing Group Co., Ltd. released its 2023 annual performance forecast on the Hong Kong Stock Exchange, with an expected negative annual net profit of -23800 million yuan to -19800 million yuan, a year-on-year decrease of 3645% to 4179%。Net profit after deducting non-recurring gains and losses was -13900 million yuan to -1 billion yuan, a year-on-year decrease of 2622% to 3255%。This figure has set a new record for net profit loss in the past six years, and the decline is staggering.
In the announcement, Red Star Macalline uncharacteristically explained the reasons for the change in performance by more than 1,200 words, trying to offset the negative impact of the huge performance loss on the company's stock price and market position. It said that the main reason for the pre-loss of performance is that affected by the fluctuation of the domestic economic environment, the home building materials industry is facing the dual pressure of demand contraction and supply shock, and the contraction of the real estate industry has further led to the sluggish demand of the home retail market. To this end, Red Star Macalline expects a total impairment provision of about 1.7 billion yuan in 2023, of which about 1 billion yuan will be added in the fourth quarter.
According to public information, Red Star Macalline was established in 2007 and completed the listing of Hong Kong stocks and Shanghai Stock Exchange in June 2015 and January 2018 respectively, and is the first home furnishing store brand in China to complete the "A+H" listing. The miserable performance in 2023 is the most serious loss of Red Star Macalline since it landed on the Shanghai Stock Exchange in 2018. Red Star Macalline said that it will continue to pay attention to the follow-up progress of key matters and fulfill its information disclosure obligations in a timely manner. At the same time, with the implementation of relevant policies, the demand for household consumption can be expected to pick up, and the industry will usher in a window of opportunity. The Company will seize opportunities and strive to enhance and improve operational efficiency and operating performance.