AustAsia Group Ltd. provided group earnings guidance for the six months ended 30 June 2023. For the six months ended 30 June 2023, the Group expects to record a consolidated net loss of approximately USD 40 million to USD 50 million, compared with the net profit of approximately USD 30 million for the six months ended 30 June 2022. The expected loss is attributable principally to: A loss arising from changes in fair value less costs to sell of biological assets. For the Period, the Revaluation Loss is expected to be ranging from approximately USD 55 million to USD 65 million, as compared to the USD 2 million gain arising from changes in fair value less costs to sell of biological assets for the same period of 2022. The Revaluation Loss was mainly attributable to the decreases in selling price of raw milk and the increase in feed costs for the past 12-month period; and Weak demand for raw milk and dairy products and the relatively low market price for raw milk in China during the Period. The Group's average selling price of raw milk for the Period
was approximately 8% lower compared with the same period of 2022. Meanwhile, compared to the same period of 2022, the feed cost per kg of raw milk increased by approximately 7% for the Period, resulting in a gross profit margin decrease.