Pagoda expects profit to plummet, share price falls more than 70% this year

[Rina77RS]

Recently, Pagoda Group issued a profit warning, predicting that profits in the first half of 2024 will decrease by no more than 70% year-on-year, and revenue will decrease by no more than 15%. As of the close of August 16, Pagoda's share price closed at HK$1.74, down more than 70% from the beginning of this year and far from the issue price of HK$5.6, with a total market value of only HK$2.764 billion.

Bairuoyuan announced that based on the preliminary review of the Group's unaudited consolidated management accounts as of June 30 this year and the information currently available to the board of directors, it is philippines girl telegram expected that the Group's profit attributable to owners of the Company in the first half of 2024 will be no less than 70% lower than the profit attributable to owners of the Company of approximately RMB261 million for the six months ended June 30, 2023, and the Group's revenue in the first half of 2024 will be no less than 15% lower than the Group's revenue of RMB6.294 billion for the six months ended June 30, 2023.



According to statistics, from 2020 to 2023, Baiguoyuan's sales costs accounted for 90.9%, 88.8%, 88.4% and 88.0% of the company's total revenue respectively.

This year, Baiguoyuan officially announced Yang Mi as Baiguoyuan's good life ambassador, trying to boost sales with traffic. Baiguoyuan said that the company actively pays attention to changes in market demand and adjusts its business strategy as needed.

In addition, thanks to the successful holding of JDcom's 618 promotion event in the second quarter of this year, both new and old merchants have achieved significant sales growth on JD.com. During JD.com's 618 period, sales of more than 150,000 small and medium-sized merchants increased by more than 50%.