Gansu National Defense Industry & Trade (601086.SH) is expected to have a net profit of 48.93 million to 71.25 million yuan in 2024, a year-on-year decrease of 68.98% to 54.83%.

Gansu Guofang Industry & Trade (601086.SH) issued an announcement stating that, according to the financial department's calculations, it is expected that the operating performance for the year 2024 will decrease. The net profit attributable to the shareholders of the listed company is expected to be between RMB 48,935,500 and RMB 71,256,600, a decrease of RMB 108,823,200 to RMB 86,502,100 compared to the same period last year, with a year-on-year change rate of -68.98% to -54.83%. It is expected that the net profit attributable to the shareholders of the listed company for the year 2024, excluding non-recurring losses and gains, will be between RMB 62,234,400 and RMB 81,265,500. This is a decrease of RMB 53,256,800 to RMB 34,225,700 compared to the same period last year, with a year-on-year change rate of -46.11% to -29.63%. During the reporting period, the company's sales revenue in various regions decreased due to changes in the macroeconomic, market environment, and consumer demand. The company's important subsidiary, Lanzhou Guofang, implemented a comprehensive upgrade and renovation project, which resulted in significant sales losses at certain stores due to phased and regional partial closures for construction. In order to actively respond to the economic environment, the company increased marketing efforts through the distribution of consumer vouchers and promotional vouchers, leading to a decrease in gross profit and an increase in expenses. Due to the aforementioned reasons, the company's overall operating income and gross profit levels have both decreased compared to the previous year.