LEADWAY TECH (02086) announces expected net profit of HK$1 million to HK$4 million for the year 2024, turning loss into profit on a year-on-year basis.

LEADWAY TECH (02086) announced that compared to a net loss of 19.2 million Hong Kong dollars for the year ended on December 31, 2023 (financial year 2023), the Group expects to achieve a net profit ranging from 1 to 4 million Hong Kong dollars for the year ending on December 31, 2024. The Board of Directors believes that the turnaround from loss to profit can be attributed to the following factors: (1) Increase in revenue and gross profit - Revenue increased from 79.2 million Hong Kong dollars in financial year 2023 to 100 million Hong Kong dollars in financial year 2024, approximately a 21 million Hong Kong dollar increase; Gross profit increased from 42.3 million Hong Kong dollars in financial year 2023 to 52.4 million Hong Kong dollars in financial year 2024, approximately a 10.1 million Hong Kong dollar increase. This growth is attributed to efforts to actively expand business channels, including participating in trade exhibitions, enhancing online promotional activities, and strengthening customer relationships; and (2) Reduction in total labor costs - Total labor costs decreased from 40.2 million Hong Kong dollars in financial year 2023 to 29.8 million Hong Kong dollars in financial year 2024, a decrease of approximately 10.4 million Hong Kong dollars. This decrease was achieved through optimizing human resources, operational restructuring, and efficiency improvement measures, all of which contributed to reducing employee expenses.