Ajisen (China) Holdings Limited (00538) said it is expected that the group may record a decrease of approximately 50% to 70% in net profit for the year ended 31 December 2019 as compared to the net profit recorded in the amount of approximately RMB565.34 million for the same period in 2018.
The decrease is mainly due to (i) the effects of the application of the Hong Kong Financial Reporting Standard 16 "Leases" (effective for the accounting period beginning from 1 January 2019) on expenditure; the rise in pork price during the year of 2019 as compared with 2018; and (iii) the one-off gain on investment recorded for the year ended 31 December 2018.
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