ZIBUYU (02420) Announces Profit Increase, Estimated annual net profit is expected to be approximately 1.4 billion to 1.6 billion RMB, reversing from a loss to a profit compared to the previous year.

ZIBUYU(02420) announced that compared to a net loss of approximately RMB 266 million for the year ended December 31, 2023, the Group expects to achieve a net profit of approximately RMB 140 million to RMB 160 million for the year ending December 31, 2024; compared to a net cash inflow from operating activities of approximately RMB 76.70 million for the year ended December 31, 2023, the Group expects a net cash inflow from operating activities of approximately RMB 250 million to RMB 270 million for the reporting period. The announcement stated that this is mainly due to the comprehensive impact of the following events: further improving the efficiency of commodity operations, optimizing inventory structure, resulting in a significant decrease in inventory impairment and corresponding decrease in warehousing costs; and continuous increase in revenue, leading to a corresponding increase in gross profit.