Mainland Headwear Holdings Limited and its subsidiaries (the “Group”) warned shareholders and potential investors that it expects to report a decline of more than 35 percent year-over-year in consolidated profit attributable to the company’s owners for the year ended December 31, 2023.
The determination is based on the preliminary assessment of the Group’s latest unaudited consolidated management accounts and information available to the Board. The announcement was reportedly made pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The company further referred shareholders and potential investors to its interim report for the six-month period ended June 30, 2023 (read SGB Media’s coverage below), when it reported that revenue from the Group’s manufacturing and trading businesses declined 16.5 percent and 18.1 percent, respectively, on a year-over-year basis.
The H1 decrease was said to be mainly attributable to built-up inventories still being off-loaded by customers due to port congestion and logistics and transportation chaos from 2022.
In the second half of 2023, the Group continued encountering the issue of built-up inventories by customers waiting to be purchased.
Images courtesy Mainland Headwear Holdings Limited/New Era
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Read SGB Media’s coverage of Mainland Headwear’s recent financial reports below.
EXEC: Mainland Headwear H1 Revenues, Profits Fall Double-Digits
Mainland Headwear Up 17 Percent In 2022; Mexico Factory Opening Near Texas Border
