[ET Net News Agency, 21 July 2021] Blue Moon Group Holdings Limited (06993) said the
group expects to record a consolidated loss attributable to shareholders of approximately
HK$44 million for the six months ended 30 June 2021 (first half 2021) as compared to the
profit of approximately HK$302 million for the six months ended 30 June 2020 (first half
2020).
The loss was mainly attributable to (i) the group noticing the oversupply of
lower-priced products by platforms, which are not the group's clients, in the market which
had led to disruption to the group's pricing strategy and the pricing structure of the
group's products in the market. With a view to aligning the pricing of its products in the
market, the group provided certain discounts to its clients to stabilize the market price
of the group's products. Such discounts have negatively affected the group's gross profit
margin by approximately 9% in first half 2021, nevertheless the level of discounts has
been steadily decreasing during first half 2021, (ii) the increase in raw material cost as
compared to that for first half 2020, (iii) certain Supreme-branded concentrated liquid
laundry detergent returned during first half of 2020 were bundled with other products and
sold at a discount during first half 2021, with a negative impact on gross profit margin
by approximately 1% in first half 2021, and (iv) the loss of approximately HK$67 million
as incurred by the laundry business of the group which has been under development since
4th quarter of 2020. (RC)