May 21, 2024
Jetcon Corporation Limited(JETCON)
Audited financials for the year ended December 31, 2023:
Jetcon Corporation Limited (JETCON) reported a 35% decrease in turnover totaling $672.52 million for the year ended December 31, 2023, compared to $1.03 billion in the corresponding period last year. This 35% year-over-year decline can be attributed to increasing competition from smaller car dealerships across the island and the interest rate environment, which drives vehicle financing to higher levels than previously.
Jetcon Corporation Limited (JETCON) experienced a substantial decrease in gross profit, which closed at $81.15 million, a 42% decrease compared to $140.37 million for the year ended December 31, 2022. Cost of sales amounted to $591.36 million (2022: $891.95 million), a 34% decrease year over year.
Jetcon Corporation Limited (JETCON) demonstrated its proactive approach to the economic challenges by reducing Administrative and Other Expenses by 17%, from $85.53 million in 2022 to $70.67 million in the period under review. This was in an effort to mitigate the impact on the bottom line as the headwinds of the economic environment catapulted a decline in revenue. Selling and marketing expenses for the year ended December 31, 2023, amounted to $10.45 million, a 59% decline relative to the $25.69 million reported in 2022.
Total Expenses for the year ended December 31, 2023, amounted to $81.12 million, a 27% decrease relative to the $111.21 million reported in 2022.
There was no taxation for the year ended December 31, 2023, relative to the $4.00 million reported in 2022.
Loss After Taxation for the year ended December 31, 2023, amounted to $4.51 million (2022: profit after taxation of $24.76 million). Total Comprehensive Loss for the year amounted to $4.55 million, from total comprehensive income of $24.77 million profit reported in 2022.
Consequently, Loss Per Share for the year amounted to $0.01 (2022: EPS: $0.04). The number of shares used in these calculations was 583,500,000 units.
Notably, JETCON’s stock price closed the trading period on May 18, 2024, at a price of $0.90, reflecting the current market conditions and the company’s financial performance.
Balance Sheet Highlights
The company’s assets remained stable, totaling $667.56 million (2022: $641.83 million), representing a marginal 4% year-over-year increase. This increase in total assets is ascribed to a 7% YoY increase in Property, Plant and Equipment, which closed the period at $158.08 million (2022: $148.10 million), Cash and Bank Deposits which closed the period at $9.48 million (2022: $6.54 million) and Inventories which grew 6% YoY to close the year at $417.80 million (2022: $392.71 million).
Similarly, Shareholder’s equity was maintained at a solid $575.00 million (2022: $579.55 million), representing a book value per share of $0.99 (2022: $0.99). This marginal decrease of 1% year over year is attributed to the loss the company made over the year, which impacted the Retained Earnings account, closing the period at $469.42 million (2022: $473.94 million)
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