Summary by Moomoo AI
CHINA RUYI announced the earnings forecast for the fiscal year 2024, with adjusted net profit (measured by non-Hong Kong Financial Reporting Standards) expected to be about RMB 1.2 billion, a significant increase of 111% compared to RMB 0.569 billion in the same period of 2023. However, according to Hong Kong Financial Reporting Standards, the group expects to record a net loss of about RMB 0.21 billion, whereas in the same period last year, the net profit was approximately RMB 0.683 billion.The primary reason for the accounting loss is that the warrants issued by Virtual Cinema Entertainment Limited, which was acquired by the company at the beginning of 2021, were fully exercised in the fiscal year 2024, resulting in a fair value change of about RMB 1.12 billion. The Board of Directors emphasizes that the change in the fair value of these warrants is a non-operational accounting adjustment item, and since the warrants have been fully exercised, they will no longer affect the group's financial performance in the future.
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